CT Holdings’ losses mount to Rs.191 mln
View(s):CT Holdings releasing its second quarter financial results stated it had recorded a group loss of Rs. 191 million compared to profits made during the same period last year.
Group losses were recorded at Rs.191.3 million compared to a profit of Rs.144 million in the same period last year, the company stated.
The group recorded a drop in profits with Gross Profit recorded at Rs.1.5 billion compared to Rs.1.6 billion during the same period last year. But group turnover was above last year by 8 per cent at Rs.16.07 billion.
CT Holdings had taken initiatives to re-structure the retail sector by transferring operations and related assets to Cargills Food Company. During the second quarter of this year these were transferred to the subsidiary resulting in a one-off tax charge of Rs.101 million.
The 25 per cent cap on VAT had also impacted on the company’s operating results in the retail sector, the company noted.
FMCG sector performed well but was hampered by losses in the soft alcohol sector. The dairy sector had seen an investment of Rs.1.3 billion by the group during the past two years and commercial operations of brewery were scaled back during the last quarter due to the subsequent disposal of this operation.
In the real estate sector, the group’s two malls namely Majestic City and the Jaffna Square were fully rented out, it was noted. Further the group has invested in a joint venture project currently implemented in Kotahena.
In addition, CT Holdings has experienced low turnover from its restaurant business due to closure for refurbishments. On the other hand, it also opened two cinema screens at the newly refurbished Arcade Independence Square that comprises 3D viewing facilities and high quality seating.
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