E B Creasy mpany : Quarterly Financial Statements as of 30-06-2022

E. B. Creasy & Company PLC (PQ 182)

INTERIM FINANCIAL STATEMENTS

For the Three Months ended 30th June 2022

First Three Months Performance Review - Financial Year 2022-23

The Sri Lankan economy is facing an unprecedented crisis caused by the serious depletion of foreign exchange reserves, hyperinflation, and rising local interest rates to combat the inflation. This has led to greater challenges to everyday life of both individuals and businesses with a scarcity of daily essentials.

Despite numerous challenges encountered in the macroeconomic and social settings, the Group, once again, placed on record a resilient performance in the first three months of the 2022-23 financial year, driven by outstanding results in its core segments, Homecare, Personalcare, Healthcare and Foods. The Group continues to execute its strategies to minimize disruptions to supply chains with persistent focus on working capital efficiencies and cost rationalization measures. Against a challenging operating environment, we are encouraged by the progress we have made in the first quarter.

The Group revenue and profit before tax for the Q1-FY2022-23 stood at Rs.5.4 billion and Rs.547 million respectively, both reporting an increase of 56% per cent and 146% per cent respectively over the previous year. The Company recorded a quarter-on-quarter increase of 69% and 47% in revenue and profit before tax. The performances were impacted by a significant exchange loss on its foreign currency denominated import liabilities and the increased finance cost due to high interest rates applied on the Group's borrowings, resulting a sharp rise in Group's net finance cost compared to the previous year.

The present business climate has presented a set of unprecedented challenges to our teams, which demands innovation, agility and a sense of urgency to respond swiftly to shifts and changes in the external environment. Even under a hostile business climate, the Group remains determined to fulfill its aspiration of delivering sustainable and profitable growth to maintain acceptable levels of return on capital employed, while ensuring our commitment towards our valued stakeholders.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME COMPANY

For the quarter ended 30th June	2022	2021	Variance
	Rs. '000		Rs. '000	%
Revenue	1,987,715	1,174,205	69%
Cost of Sales	(1,429,699)		(853,872)	67%
Gross Profit	558,016	320,333	74%
Other Income	7,374	4,261	73%
Selling and Distribution Expenses	(63,848)	(47,035)	36%
Administrative Expenses	(165,847)	(126,313)	31%
Net Finance Expenses	(125,219)	(8,200)	1427%
Profit before Tax	210,476	143,046	47%
Income Tax Expense	(37,886)	(25,748)	47%
Profit for the Period	172,590		117,298	47%
Other Comprehensive Income/(Expense)
Items that will not be reclassified to Profit or Loss
Remeasurement of Retirement Benefit Obligation (net of tax)	(2,411)	(2,411)	0%
Equity Investments at FVOCI - Net Changes in Fair Value	(106,926)	(16,636)	543%
Other Comprehensive Expense for the period, net of tax	(109,337)	(19,047)	474%
Total Comprehensive Income for the period	63,253	98,251	-36%
Basic Earnings per Share (Rs.)	0.68		0.46
Dividend per Share (Rs.)	-	-

Figures in brackets indicate deductions.

The above figures are provisional and subject to audit.

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME CONSOLIDATED

For the quarter ended 30th June	2022	2021	Variance
	Rs. '000		Rs. '000	%
Revenue	5,406,650	3,458,944	56%
Cost of Sales	(3,530,352)		(2,494,212)	42%
Gross Profit	1,876,298	964,732	94%
Other Income	48,827	12,515	290%
Selling and Distribution Expenses	(546,992)	(301,568)	81%
Administrative Expenses	(454,213)	(355,729)	28%
Net Finance Expenses	(377,166)	(87,177)	333%
Share of Results of Equity Accounted Investees	-		(10,099)	-100%
Profit before Tax	546,754	222,674	146%
Income Tax Expense	(67,582)	(42,592)	59%
				166%
Profit for the period	479,172		180,082
Other Comprehensive Income/(Expense)
Items that will not be reclassified to Profit or Loss
Remeasurement of Retirement Benefit Obligation (net of tax)	(4,256)	(4,256)	0%
Equity Investment at FVOCI - Net Changes in Fair Value	(127,634)	(17,420)	633%
				508%
Other Comprehensive Expense for the period, net of tax	(131,890)		(21,676)
				119%
Total Comprehensive Income for the period	347,282		158,406
Profit/(Loss) Attributable to:
Equity Holders of the Parent	497,574	172,096
Non-Controlling Interest	(18,402)	7,986
Profit for the period	479,172		180,082
Total Comprehensive Income/(Expense) attributable to:
Equity Holders of the Parent	366,045	150,561
Non-Controlling Interest	(18,763)	7,845
Total Comprehensive Income for the period	347,282		158,406
Basic Earnings per Share (Rs.)	1.96	0.68
Dividend per Share (Rs.)	-	-

Figures in brackets indicate deductions.

The above figures are provisional and subject to audit.

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STATEMENT OF FINANCIAL POSITION

	GROUP	COMPANY
As at	30.06.2022	31.03.2022		30.06.2022	31.03.2022
	Unaudited		Unaudited	Unaudited		Unaudited
	Rs. '000		Rs. '000	Rs. '000		Rs. '000
ASSETS
Non-Current Assets
Property, Plant & Equipment	6,695,654	6,288,800		4,686,097	4,657,896
Investment Property	2,800	2,800		-	-
Intangible Assets	202,134	208,081		8,002	13,063
Right of Use Asset	141,944	148,489		247,067	251,248
Investments in Subsidiaries	-	-		2,070,397	2,070,397
Other Financial Assets measured at Fair Value through OCI	1,021,925	1,149,562		389,717	496,645
Deferred Tax Asset	210,181		210,181		-		-
Total Non-Current Assets	8,274,638	8,007,913		7,401,280	7,489,249
Current Assets
Inventories	4,134,354	3,416,708		1,766,225	1,385,536
Trade and Other Receivables	3,432,229	3,141,471		118,642	105,642
Amount Due from Related Companies - Trade	-	1,488		1,604,818	1,652,122
Amount Due from Related Companies - Non - trade	80,216	66,789		246,959	336,638
Loans due from Related Parties	209,673	208,173		160,173	158,673
Income Tax Recoverable	-	2,538		-	-
Short term Investments	58,714	-		-	-
Cash and Cash Equivalents	1,193,725		1,674,250		247,925		584,125
Total Current Assets	9,108,911		8,511,417		4,144,742		4,222,736
Total Assets	17,383,549	16,519,330		11,546,022	11,711,985
EQUITY AND LIABILITIES
Equity
Stated Capital	25,731	25,731		25,731	25,731
General Reserves	9,548	9,548		9,548	9,548
Revaluation Reserve	2,627,234	2,627,234		2,283,584	2,283,584
Retained Earnings	2,684,698		2,318,653		2,455,729		2,392,476
Equity Attributable to Equity Holders of the Company	5,347,211	4,981,166		4,774,592	4,711,339
Non-Controlling Interest	310,417		329,180		-		-
Total Equity	5,657,628	5,310,346		4,774,592	4,711,339
Non-Current Liabilities
Loans and Borrowings	1,515,562	1,325,723		1,221,568	1,232,096
Lease Liabilities	206,701	208,035		265,039	269,251
Deferred Income and Capital Grants	3,943	4,008		3,943	4,008
Deferred Tax Liability	666,771	666,771		519,473	519,473
Retirement Benefit Obligations	850,423		817,952		617,399		594,093
Total Non-Current Liabilities	3,243,400	3,022,489		2,627,422	2,618,921
Current Liabilities
Loans and Borrowings	5,001,984	3,895,641		2,898,433	2,848,189
Lease Liabilities	33,678	30,965		22,562	22,276
Current Taxation Payable	142,023	89,700		62,700	28,510
Trade and Other Payables	2,500,286	3,441,202		404,546	692,676
Amount Due to Related Companies	47,691	88,131		375,729	427,483
Bank Overdrafts	756,859		640,856		380,038		362,591
Total Current Liabilities	8,482,521		8,186,495		4,144,008		4,381,725
Total Equity and Liabilities	17,383,549		16,519,330		11,546,022		11,711,985
Net Assets Value Per Share Rs.	21.09	19.65		18.83	18.58

The above figures are provisional and subject to audit.

I certify that these Financial Statements are prepared in compliance with the requirements of the Companies Act No.7 of 2007.

-

SGD

Ravi Rathnasekara Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

These Financial Statements were approved and signed for and on behalf of the Board of Directors of E. B. Creasy & Company PLC.

SGD	SGD
R.C.A.Welikala	S.W.Gunawardena
Director	Director
12th August 2022

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