CIC Group considers new ‘significant’ investments in core area of agriculture for export
View(s):CIC Holdings PLC, which says first quarter 2016 results have been impressive particularly in its core area of agriculture, is considering significant investments in the areas of dairy and value added vegetables for export.
While feasibility studies in this context are underway, the company said in a statement that it has commenced a project to supply corn to the local feed industry with a capital expenditure of approximately Rs. 700 million and a projected equity pay back of approximately six years.“CIC is also currently upgrading its binder business with new technology to help the company successfully face the market challenges of the future. The company will continue to look at other avenues for investment provided its returns cross the hurdle rates set by the board of directors,” the statement said.
Group profit after tax (PAT) was Rs. 395.9 million for the first quarter of the financial year ending 2015/16, sharply up by 94 per cent from the corresponding period of the previous financial year. The group also recorded revenue of Rs. 6.51 billion, an increase of 15.6 per cent.
CIC said it also reduced expenses in Q1 and the group’s finance cost reduced due to the maximization of savings and the efficient utilization of borrowed funds. Commenting on CIC’s performance, Harsha Amarasekera, Group Chairman, said, “In the first quarter of 2015/16, CIC has continued its momentum of growth, and several sectors have performed above last year. I would like to commend the senior management and Board of Directors, for effectively implementing our revised strategy, and ensuring the group’s continued profitability. As we look ahead to the future, we shall focus on exploring new partnerships and export opportunities, and we will also seek to implement the use of new technology to take the group forward”.
Agriculture and ss Livestock sector achieved an operating result of Rs. 473 million in the first quarter of 2015/16, up by 54 per cent over the first quarter of the previous financial year. “The increase in profitability is attributed to the performance of the agribusiness companies in the group, including the dairy sector and CIC Feeds, which showed a notable improvement from the previous year.”