C i t r u s L e i s u r e P L C
Interim Financial Statements
For the Quarter ended 30th September 2022
Citrus Leisure PLC and Its Subsidiaries
CEO Message
Dear Shareholders,
It is with great pleasure that I share with you the interim financial statements of Citrus Leisure PLC for the quarter ending 30th September 2022.
The Group Hotels had its normal operations during the quarter under review whilst Citrus Waskaduwa and Citrus Hikkaduwa Hotels were operated as Intermediary Care Centers during the previous year which concluded on the 30th of September 2022. Overall, the Group recorded a Revenue of Rs. 301 Mn (YoY 113%) for the quarter ending 30th September 2022 while maintaining GP ratio at 54% against previous year's recorded 67%. Also the Group incurred operating loss amounting to Rs. 151 Mn and Net Loss amounting to Rs. 346 Mn during the quarter under review.
For the Six month ending 30th September 2022, the Group posted Rs. 592Mn (YoY 113%) revenue and 58% GP margin against previous year's recorded 66%. Also Admin and operational expenses increased by 49% and finance cost by 110% compared to previous year same period. Hence Group's profitability decreased significantly and recorded Rs. 248 Mn operating loss and Rs. 608 Mn net loss for the same period. Citrus Hikkaduwa hotel contributed Rs. 144 Mn while Citrus Waskaduwa and Citrus Silver Hotels contributed Rs. 267 Mn and Rs. 181Mn respectively towards the Group's total revenue for the six month period under review.
Citrus Hikkaduwa operated at 42% Occupancy , Citrus Waskaduwa at 34% and Citrus Silver at 46% .The drop in occupancies was mainly due to the lack of tourist arrivals to the country. The Group is hoping that economic activities of the country will pick up during the coming months to ensure higher occupancy levels at all hotels . Revenues of all three restaurants under Citrus Silver Limited, "Steuart &Co Pub", "Ceylon Curry Club" and "Heladiv Tea Club" dropped sharply against the Company's planned numbers due to road access to this area was restricted for a lengthy period of time denying guest to patronise our restaurants in the Fort area.
With the crisis situation in the country, most of the expenses and cost have increased sharply compared to previous year and almost all food and beverage items, other expenses and services have increased over 300%. In addition to this, the sudden introduction of 15% Value added Tax and 2.5% Social Security Contribution Levy have further deteriorated our margins. With the continuous power cuts and shortage of fuel and also the increase in fuel prices, the hotels had to incur significant cost increase as generators had to be used on a daily basis for times ranging from 3 to 10 hours. Also due to the lack of foreigners, the hotels were not able to get the benefit of a higher exchange rate as well. In addition to above, increase in interest rates over 300% have eroded the profitability of the Group.
Future Outlook
It is evident that Russian market will continue to generate marginal numbers during the Winter period but European market are yet to open up as uncertainties in and increases in fares of Air travel has discouraged many European holiday makers to look at long haul travel to the Asian region. The Industry is expecting political stability in the country to ensure shortages of essential commodities do not occur in the immediate future.
Thank You
Chandana Talwatte
Director/Group CEO
Page 1 of 10
Citrus Leisure PLC and Its Subsidiaries
STATEMENT OF FINANCIAL POSITION
Group | Company | |||
As at | 30.09.2022 | 31.03.2022 | 30.09.2022 | 31.03.2022 |
(Unaudited) | (Audited) | (Unaudited) | (Audited) | |
Rs.'000 | Rs.'000 | Rs.'000 | Rs.'000 | |
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 6,317,894 | 6,410,700 | 4,009 | 4,496 |
Investment properties | 576,496 | 576,496 | - | - |
Right-of-use assets | 242,258 | 273,635 | 61,820 | 64,157 |
Intangible assets | 1,818 | 2,315 | 328 | 472 |
Investments in subsidiaries | - | - | 3,551,794 | 3,551,794 |
Investment in associate | 2,317,679 | 2,328,609 | - | - |
Other receivables - related parties | - | - | 236,099 | 180,018 |
Deferred tax assests | 33,762 | 33,762 | - | - |
9,489,907 | 9,625,517 | 3,854,051 | 3,800,937 | |
Current assets | ||||
Inventories | 67,396 | 39,208 | - | - |
Trade and other receivables | 101,588 | 106,368 | 33,870 | 20,474 |
Advances and prepayments | 41,729 | 46,505 | 3,469 | 2,783 |
Other current financial assets | 64,511 | 63,961 | 15,915 | 14,959 |
Tax receivables | 15,279 | 15,569 | 6,651 | 6,649 |
Cash and bank balances | 26,164 | 57,860 | 7,674 | 2,942 |
316,667 | 329,470 | 67,578 | 47,808 | |
Total assets | 9,806,574 | 9,954,988 | 3,921,628 | 3,848,745 |
EQUITY AND LIABILITIES | ||||
Capital and reserves | ||||
Stated capital | 3,256,173 | 3,256,173 | 3,256,173 | 3,256,173 |
Revaluation reserve | 1,581,654 | 1,581,654 | - | - |
Retained earnings/(loss) | (1,902,653) | (1,428,454) | (82,711) | ( 51,415 ) |
Equity attributable to equity holders of the parent | 2,935,174 | 3,409,373 | 3,173,462 | 3,204,758 |
Non-controlling interest | 1,200,441 | 1,334,399 | - | - |
Total equity | 4,135,614 | 4,743,772 | 3,173,462 | 3,204,758 |
Non-current liabilities | ||||
Deferred tax liability | 353,870 | 353,870 | - | - |
Retirement benefit obligation | 47,375 | 45,194 | 12,655 | 11,595 |
Interest bearing loans and borrowings | 2,629,751 | 2,785,539 | - | - |
Advance received for leasehold rights | - | - | 155,088 | 155,985 |
Lease liabilities | 109,484 | 138,962 | 4,967 | 8,678 |
Other payables - related parties | - | - | 15,280 | 14,718 |
3,140,480 | 3,323,566 | 187,991 | 190,975 | |
Current liabilities | ||||
Trade and other payables | 1,336,592 | 961,899 | 556,070 | 437,013 |
Interest bearing loans and borrowings | 1,058,389 | 800,230 | - | 11,896 |
Lease liabilities | 85,357 | 85,357 | 4,103 | 4,103 |
Contract liabilities | 50,142 | 40,165 | - | - |
2,530,480 | 1,887,650 | 560,173 | 453,012 | |
Total equity and liabilities | 9,806,574 | 9,954,988 | 3,921,628 | 3,848,745 |
(138) | 679 | (1) | 1 |
These Financial Statements are in compliance with the requirements of the Companies Act No. 7 of 2007.
……………………………
D. C. A. Sandanayake
Group Finance Manager
The Board of Directors is responsible for these Financial Statements. Signed for and on behalf of the Board by;
………………………….. | …………………………… |
E. P. A. Cooray | S. A. Ameresekere |
Director | Director |
15 November 2022 | |
Colombo | Page 2 of 10 |
Citrus Leisure PLC and Its Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarter ended 30 September | Six month ended 30 September | Year ended | ||||||||||
2022 | 2021 | Variance | 2022 | 2021 | Variance | 31 March 2022 | ||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||||||
Rs.'000 | Rs.'000 | % | Rs.'000 | Rs.'000 | % | Rs.'000 | ||||||
Revenue from contracts with customers | 301,682 | 141,784 | 113% | 591,937 | 277,303 | 113% | 848,527 | |||||
Cost of sales | (138,792) | (47,333) | 193% | (250,813) | (93,242) | 169% | (283,632) | |||||
Gross profit | 162,890 | 94,451 | 72% | 341,124 | 184,061 | 85% | 564,895 | |||||
Other operating income | 743 | 9,491 | -92% | 3,112 | 14,576 | -79% | 21,549 | |||||
Administrative expenses | (153,607) | (114,072) | 35% | (291,575) | (227,958) | 28% | (489,706) | |||||
Operating expenses | (150,174) | (77,061) | 95% | (275,902) | (152,987) | 80% | (378,438) | |||||
Selling and marketing expenses | (11,630) | (4,849) | 140% | (25,534) | (9,616) | 166% | (29,678) | |||||
Operating loss | (151,777) | (92,040) | 65% | (248,775) | (191,924) | 30% | (311,378) | |||||
Finance expenses | (188,618) | (82,743) | 128% | (351,656) | (167,822) | 110% | (373,978) | |||||
Finance income | 2,102 | 1,646 | 28% | 3,732 | 2,374 | 57% | 3,116 | |||||
Share of associate company's profit/(loss), (net of tax) | (7,536) | (8,242) | -9% | (10,929) | (12,344) | -11% | 126,124 | |||||
Impairment of investment in associate | - | - | - | - | (35,935) | |||||||
Loss before tax | (345,828) | (181,379) | 91% | (607,627) | (369,716) | 64% | (592,052) | |||||
Income tax reversal | (369) | (329) | 12% | (530) | 3,820 | -114% | 30,229 | |||||
Loss for the period/ year | (346,198) | (181,708) | 91% | (608,158) | (365,895) | 66% | (561,822) | |||||
Attributable to: | ||||||||||||
Equity holders of the parent company | (267,150) | (155,513) | 72% | (474,199) | (312,222) | 52% | (459,299) | |||||
Non-controlling interests | (79,047) | (26,194) | 202% | (133,959) | (53,673) | 150% | (102,524) | |||||
(346,198) | (181,708) | 91% | (608,158) | (365,895) | 66% | (561,822) | ||||||
Other comprehensive income/(loss) | ||||||||||||
Other comprehensive income not to be reclassified to income | ||||||||||||
statement in subsequent periods | ||||||||||||
Revaluation gain on lands and buildings | - | - | - | - | 1,127,413 | |||||||
Income tax effect on revaluation of land and buildings | - | - | - | - | (157,838) | |||||||
Actuarial losses on defined benefit plan | - | - | - | 91 | ||||||||
- | ||||||||||||
Income tax effect on defined benefit plan | - | - | - | - | (184) | |||||||
Share of other comprehensive income of associate | - | - | - | - | 2,572 | |||||||
Other comprehensive income for the period/ year net of tax | - | - | - | - | 972,054 | |||||||
Total comprehensive loss for the period/ year net of tax | (346,198) | (181,708) | (608,158) | (365,895) | 410,232 | |||||||
Attributable to: | ||||||||||||
Equity holders of the parent company | (267,150) | (155,513) | (474,199) | (312,222) | 237,625 | |||||||
Non-controlling interests | (79,047) | (26,194) | (133,959) | (53,673) | 172,607 | |||||||
(346,198) | (181,708) | (608,158) | (365,895) | 410,232 | ||||||||
Basic loss per share - Basic (Rs.) | (1.00) | (0.58) | (1.77) | (1.17) | (1.72) |
Page 3 of 10
Citrus Leisure PLC and Its Subsidiaries
STATEMENT OF COMPREHENSIVE INCOME
Company | ||||||||||||||
Quarter ended 30 September | Six month ended 30 September | Year ended | ||||||||||||
2022 | 2021 | Variance | 2022 | 2021 | Variance | 31 March 2022 | ||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||||||||
Rs.'000 | Rs.'000 | Rs.'000 | Rs.'000 | % | Rs.'000 | |||||||||
Revenue | 9,015 | 4,285 | 110% | 18,736 | 8,353 | 124% | 25,453 | |||||||
Cost of sales | - | - | - | - | - | - | - | |||||||
Gross profit | 9,015 | 4,285 | 110% | 18,736 | 8,353 | 124% | 25,453 | |||||||
Other income | 448 | 601 | -25% | 896 | 1,049 | -15% | 1,945 | |||||||
Administrative expenses | (12,601) | (10,357) | 22% | (24,747) | (19,607) | 26% | (89,692) | |||||||
Operating expenses | (12,463) | (9,678) | 29% | (24,816) | (19,100) | 30% | (39,639) | |||||||
Selling and marketing expenses | - | (26) | -100% | - | (189) | -100% | (189) | |||||||
Operating Loss | (15,602) | (15,176) | 3% | (29,930) | (29,494) | 1% | (102,121) | |||||||
Finance cost | (10,838) | (6,607) | 64% | (18,933) | (12,612) | 50% | (25,633) | |||||||
Finance income | 11,566 | 3,646 | 217% | 17,567 | 6,678 | 163% | 15,350 | |||||||
Loss before Tax | (14,874) | (18,137) | -18% | (31,296) | (35,427) | -12% | (112,404) | |||||||
Tax expenses | - | - | - | - | 410 | |||||||||
Loss for the period/ year | (14,874) | (18,137) | -18% | (31,296) | (35,427) | -12% | (111,993) | |||||||
Other comprehensive income/(loss) | ||||||||||||||
Items that will never be reclassified to profit or loss | ||||||||||||||
Actuarial gainson defined benefit obligations | - | - | - | - | 1,710 | |||||||||
Deferred tax effect on actuarial gains on defined benefit plan | - | - | - | - | (410) | |||||||||
Other comprehensive income/(loss) for the period/year, net of tax | - | - | - | - | 1,300 | |||||||||
Total comprehensive loss for the period/year, net of tax | (14,874) | (18,137) | -18% | (31,296) | (35,427) | -12% | (110,694) | |||||||
Basic loss per share - Basic (Rs.) | (0.06) | (0.07) | (0.12) | (0.13) | (0.42) |
Page 4 of 10
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Citrus Leisure plc published this content on 15 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2022 10:50:09 UTC.