The Cargills (Ceylon) PLC Group's improved segmental profits contributed to an increased net profit for the three months ended June 30, 2009 to Rs.162 from Rs.134 million for the same period in 2008. The company, in a statement, also attributed the performance to consistent investment, further stating that strategic cost reduction and revenue enhancement measures adopted in the early part of 2009 as well as its continued focus on business fundamentals has kept the Group on track.
A Cargills Food City outlet |
The Group revenue for the period under review was increased to Rs.7.4 billion from Rs.7.3 billion the previous year. Decreasing administrative and other expenses contributed to a Rs.64 million increase in operating profit for the period to Rs.345 million.
According to the press release, Cargills now accounts for more than 50% of the country's modern trade market share and has enjoyed significant growth in the fast moving consumer goods (FMCG) sector which performed exceptionally well in the quarter ended June 2009. Excellent turnover growth rates have been recorded by all manufacturing brands Cargills Magic, Cargills Kist and Cargills Supremo as well as by the distribution operation Millers and the KFC chain of restaurants, the statement added.
Together the FMCG sector companies have made a significant contribution to the Group's overall impressive performance, the company said. The company said it has also expanded its range of value- added services having tied up with Sri Lanka's top corporates to offer the highest level of convenience to its customers.
Its more recent partnerships include Sri Lanka Telecom, National Water Supply and Drainage Board, Ceylon Electricity Board, Lanka Electric Company (LECO) and Sampath Bank. In the medium to long term Cargills Food City would be increasing its presence in regional townships across all 25 districts of the island, said Cargills CEO Ranjit Page. "We are keen to repeat our success in the East in the Northern region as well," he said. The Group has already planned out investments in the peninsula in terms of retailing, processing and sourcing of fresh produce.
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