Renuka Foods continues growth momentum

In its interim financial statement released for the fourth quarter of the financial year 2014-15, Renuka Foods PLC recorded a revenue of Rs. 1,703 mn, a 17% increase compared to the revenue during the corresponding period last year.

Turnover recorded was Rs. 6.4 bn compared to Rs. 5.5 bn in the previous year.

The total comprehensive income of the group for the period ended March 31, 2015 was Rs. 914.8 mn, while the comprehensive income attributable to the equity holders was Rs. 482.6 mn.

In the Agribusiness sector, the Group completed production capacity enhancements, increased warehousing capacity and expanded the product portfolio. It also invested in enhanced research and development abilities, expanded its out-grower network and international distribution markets.

Tthis contributed to the sector recording revenue of Rs. 2,775 mn for the period ended March 31, 2015 and achieving a gross profit of Rs. 618 mn.

The FMCG sector reported a gross profit of Rs. 748 mn against a turnover of Rs. 3,629 mn for the period ended March 31, 2015.

The period under review has been one of consolidation.

"The dairy company, Richlife Dairies was completely integrated into Shaw Wallace Ceylon in terms of sales and distribution, sales administration and procurement resulting in significant cost savings being achieved in the quarter for the sector," said Executive Chairman Dr. Ranjit Rajiyah.

"This has enabled us to also further enhance the marketing and sales abilities by increasing numeric distribution.

The significant investments into this sector over the past three years are now complete and we believe we have built the platform for one of the country's leading food and beverage based FMCG companies powered by innovation and technology," he said.