Carsons group profit after tax up 124% to Rs. 1.1 b in 1Q

Carson Cumberbatch and Co. Ltd. reported a Group profit after tax of Rs.1.1 billion for the first quarter of the current financial year. This represents a growth of over 124% when compared with the first quarter profits of Rs. 490.2mn of the previous year.

The overseas oil palm plantation business of the Group, performed beyond expectations benefiting from higher prices for the commodity in world markets; as well as economies of scale resulting from the expansion of the plantation base that led to effective cost management.

Commodity prices were boosted by the growing demand for palm oil fuelled by its increased usage in growing markets such as China and India for edible and non-edible purposes, value added products and as a renewable energy source.

The other key business segments of the Group, namely, investments, beverage, real estate and leisure experienced slower growth due to sensitivities in the local environment.

The beverage business performance continued to be affected by high taxes, retailing restrictions and proliferation of illicit liquor that led to lower demand in the local market. The Group's total asset base grew to Rs.27.6 bn as at the end of the quarter from Rs. 22.1 billion compared to last year.

The growth has been financed from internal generations and borrowings. This asset base represents a strong resource base within the Group which is deployable for future cashflow and profit generation.

A significant proportion of cash generated from operations has been re-invested in the business, thus building capacity for future profitability. The Group now stands ready to move into a new phase of growth and expansion which will be funded through the effective use of this resource base.