Coco Lanka Group first half profit up by 416%

Sri Lankan agri-business company, Coco Lanka Ltd., has reported a phenomenal net profit of Rs.37.2 million for the group for the first half ending 30 September 2007, up by 416% from the earlier period.

Consolidated revenue rose 95% to Rs.686 million over the same period according to its interim financial statement. At company level, Coco Lanka has recorded a turnover of Rs.169 million and a net profit of Rs.4.1 million.

Due to a revaluation of its property, plant and equipment, net assets of the company had grown significantly to Rs.40.62 from Rs.32.82. As at 30 September 2007, shareholder funds was Rs.255.9 million comprising of a share capital of Rs.63 million, a reserve of Rs.88.4 million and accumulated profits of Rs.104.5 million. Subject to shareholder approval, the Colombo Stock Exchange has approved a proposed rights issue of 6.3 million ordinary shares at Rs.18 per share in the proportion of one new share for every existing one share.

A company spokesperson said the Coco Lanka has begun final discussions with its joint venture partners in the group which include British, Dutch and Canadian companies with a view to setting up marketing offices in Europe and North America to further strengthen its international distribution chain.

In March 2007, Coco Lanka diversified its business into the organic foods and tea sectors. The group grows, manufactures and markets a range of coconut products, ethnic foods, certified organic products and tea while also being engaged in commercial forestry. The company’s parent enterprise is Renuka Agro Exports Ltd and its holding company is Renuka Group Ltd.