DCSL 1Q12 consolidated gross revenue, net profit up 35%

Harry Jayawardena-controlled Distilleries Company of Sri Lanka (DCSL) recently released its interim, unaudited first quarter 2011/2012 financials in which it revealed consolidated gross revenues of Rs. 15.3 billion, up 35% year-on-year, and profit attributable to equity holders of Rs. 1.2 billion, a 49% year-on-year increase, for the three months to end-June 2011. Also shown, investment income more than doubled year-on-year to Rs. 378.2 million.

Dividends received also shot up by twice what it was the year before to Rs. 159.2 million while acquisitions of shares and other investments as well as property, plant and equipment increased in excess of Rs. 700 million and by four fold, year-on year, respectively. Also, cash and cash equivalents for the period was indicated as being Rs. 6.6 billion, up from Rs. 2.5 billion for the corresponding period the year before.

Additionally, segment-wise, there were year-on-year consolidated turnover gains in all business units, except for telecommunications. Beverages grew to Rs. 12.7 billion, from Rs. 9.3 billion, Plantations rose to Rs. 774.7 million, from Rs. 699.5 million, and Diversified increased to Rs. 702.6 million, from Rs. 178.6 million, while Telecommunications fell to Rs. 1.1 billion, from Rs. 1.15 billion. At the same time, industry profitability rose across the board, year-on-year, with Beverages growing to Rs. 1.7 billion, from Rs. 1.3 billion, Plantations rising to Rs. 132.3 million, from Rs. 87.1 million, Telecommunications increasing to Rs. 15.2 million, from a loss of Rs. 73.6 million, and Diversified going up to Rs. 47 million, from a Rs. 44.2 million loss.

However, a notation also reiterated that the company was yet to receive profits it was due from the Sri Lankan government after its shareholdings in Sri Lanka Insurance Corporation (SLIC), valued at Rs. 5.7 billion, reverted back to the state. This lack of action is said to be as a result of an unfinished valuation for 2003 to 2009 SLIC profits which the country's Supreme Court ordered paid to DCSL subsidiary Milford Holdings.