E. B. Creasy & Company PLC (PQ 182)
INTERIM FINANCIAL STATEMENTS
For the Twelve Months ended 31st March 2022
Full Year Performance Review - Financial Year 2021-22
At the time of penning this review, the Sri Lankan economy is facing an unprecedented crisis caused by the serious depletion of foreign exchange reserves, continuous depreciation of the Sri Lankan Rupee, rising domestic interest rates stemming from a contractionary monetary policy, and inimical outcomes of the country's rating downgrading. Consequently, the situation has led to enormous social unrest all over the Island and political instability, which pose greater challenges to everyday life of both individuals and businesses.
Despite the challenges encountered in the macroeconomic and social settings, the Group placed on record a resilient performance in the fourth quarter of the financial year. The cumulative performance for the full financial year 2021-22 marked an outstanding growth driven by the Group's commitment to serve its consumers in the 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 financial year.
The cumulative Group revenue and profit before tax stood at Rs.17.45 billion and Rs.1.13 billion respectively, both reporting an increase of 27 per cent and 36 per cent respectively over the previous year. During the quarter, underlying business grew by 22 per cent over the previous year's comparative quarter. The Group profit before tax of Rs. 234.38 million for Q4 FY 2021-22 signified a quarter-on-quarter increase of 133 per cent. With the Sri Lankan Rupee being free-floated since 9th March 2022, the Group incurred a significant exchange loss on its foreign currency denominated import liabilities during the period under review.
The Group's Homecare and Personalcare segments continued a notable volume-led growth momentum with general trade channel showing a steady progress. The Group's healthcare and foods businesses recorded outstanding results in revenue and profitability over the previous year. During the quarter, the Group made significant investments towards expanding its manufacturing capabilities, including the acquisition of a property at Gonawala, Sapugaskanda to enhance the output of the Homecare product range. Investments were made to increase the production efficiencies of our value-added latex manufacturing plant, which caters to high-end export markets with a view to increasing the Group's foreign exchange earnings. The Company paid an interim dividend of Rs.0.50 per share on 30th March 2022, distributing Rs.126.75 million to its shareholders. As such, the Company paid out a total dividend of Rs.1.50 per share within the FY 2021-22, which amounted to Rs.380.25 million.
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
Quarter Ended | Twelve Months Ended | ||||||||
For the period ended 31st March | 2022 | 2021 | Variance | 2022 | 2021 | Variance | |||
Rs. '000 | Rs. '000 | % | Rs. '000 | Rs. '000 | % | ||||
Revenue | 1,791,783 | 1,547,735 | 16% | 5,848,606 | 5,323,615 | 10% | |||
Cost of Sales | (1,216,003) | (1,067,606) | 14% | (4,126,050) | (3,643,479) | 13% | |||
Gross Profit | 575,780 | 480,129 | 20% | 1,722,556 | 1,680,136 | 3% | |||
Other Income | 7,020 | 6,317 | 11% | 19,690 | 14,683 | 34% | |||
Selling and Distribution Expenses | (194,242) | (214,720) | -10% | (432,413) | (511,601) | -15% | |||
Administrative Expenses | (128,437) | (121,733) | 6% | (572,444) | (495,966) | 15% | |||
Net Finance Expenses | (35,974) | (53,431) | -33% | (160,149) | (176,141) | -9% | |||
Profit before Tax | 224,147 | 96,562 | 132% | 577,240 | 511,111 | 13% | |||
Income Tax Reversal/ (Expense) | 34,694 | (15,552) | -323% | (28,862) | (90,170) | -68% | |||
Profit for the Period | 258,841 | 81,010 | 220% | 548,378 | 420,941 | 30% | |||
Other Comprehensive Income/(Expense) | |||||||||
Items that will not be reclassified to Profit or Loss | |||||||||
Remeasurement of Retirement Benefit Obligation (net of tax) | (2,412) | (31,296) | -92% | (9,645) | (38,529) | -75% | |||
Equity Investments at FVOCI - Net Changes in Fair Value | (243,578) | (79) | -308227% | 31,276 | (320) | 9874% | |||
Deferred Tax Effect on Revaluation Gain due to change in income tax rate | - | 277,759 | -100% | - | 277,759 | -100% | |||
Items that are or may be reclassified subsequently to Profit or Loss | |||||||||
Revaluation Gain (net of tax) | 243,048 | - | 100% | 243,048 | - | 100% | |||
Other Comprehensive Income/(Expense) for the period, net of tax | (2,942) | 246,384 | -101% | 264,679 | 238,910 | 11% | |||
Total Comprehensive Income for the period | 255,899 | 327,394 | -22% | 813,057 | 659,851 | 23% | |||
Basic Earnings per Share (Rs.) | 1.02 | 0.32 | 2.16 | 1.66 | |||||
Dividend per Share (Rs.) | 1.50 | 0.18 | 1.50 | 0.18 |
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
Quarter Ended | Twelve Months Ended | ||||||||
For the period ended 31st March | 2022 | 2021 | Variance | 2022 | 2021 | Variance | |||
Rs. '000 | Rs. '000 | % | Rs. '000 | Rs. '000 | % | ||||
Revenue | 4,976,291 | 4,072,465 | 22% | 17,455,850 | 13,766,848 | 27% | |||
Cost of Sales | (3,458,118) | (2,680,311) | 29% | (12,377,973) | (9,163,418) | 35% | |||
Gross Profit | 1,518,173 | 1,392,154 | 9% | 5,077,877 | 4,603,430 | 10% | |||
Other Income / (Expenses) | (5,040) | 28,590 | -118% | 46,047 | 31,675 | 45% | |||
Selling and Distribution Expenses | (615,635) | (926,621) | -34% | (1,841,720) | (1,698,397) | 8% | |||
Administrative Expenses | (257,284) | (96,101) | 168% | (1,444,186) | (1,349,282) | 7% | |||
Net Finance Expenses | (405,835) | (161,083) | 152% | (735,334) | (474,804) | 55% | |||
Share of Results of Equity Accounted Investees | - | (136,340) | -100% | 25,505 | (280,746) | -109% | |||
Profit before Tax | 234,379 | 100,599 | 133% | 1,128,189 | 831,876 | 36% | |||
Income Tax Reversal/ (Expense) | 26,651 | (121,231) | -122% | (114,363) | (248,248) | -54% | |||
Profit/ (Loss) for the period | 261,030 | (20,632) | 1365% | 1,013,826 | 583,628 | 74% | |||
Other Comprehensive Income/(Expense) | |||||||||
Items that will not be reclassified to Profit or Loss | |||||||||
Remeasurement of Retirement Benefit Obligation (net of tax) | 570 | (76,468) | -101% | (12,198) | (89,236) | -86% | |||
Equity Investment at FVOCI - Net Changes in Fair Value | (352,309) | 1,251 | -28262% | (9,455) | 7,133 | -233% | |||
Deferred Tax Effect on Revaluation Gain due to change in income tax rate | - | 291,445 | -100% | - | 291,445 | -100% | |||
Share of Other Comprehensive Income of Equity Accounted Investees, net of tax | - | 37,257 | -100% | - | 43,149 | -100% | |||
Items that are or may be reclassified subsequently to Profit or Loss | |||||||||
Debt Investments at FVOCI - net changes in fair value | - | (4,660) | -100% | - | (4,660) | -100% | |||
Debt Investments at FVOCI - reclassified to Profit or Loss | - | (1,330) | -100% | - | (1,330) | -100% | |||
Revaluation Gain (net of tax) | 311,271 | - | 100% | 311,271 | - | 100% | |||
Other Comprehensive Income/(Expense) for the period, net of tax | (40,468) | 247,495 | -116% | 289,618 | 246,501 | 17% | |||
Total Comprehensive Income for the period | 220,562 | 226,863 | -3% | 1,303,444 | 830,129 | 57% | |||
Profit/ (Loss) Attributable to: | |||||||||
Equity Holders of the Parent | 310,665 | (45,503) | 1,004,494 | 510,615 | |||||
Non-Controlling Interest | (49,635) | 24,871 | 9,332 | 73,013 | |||||
Profit/ (Loss) for the period | 261,030 | (20,632) | 1,013,826 | 583,628 | |||||
Total Comprehensive Income/ (Expense) attributable to: | |||||||||
Equity Holders of the Parent | 255,411 | 201,070 | 1,280,611 | 753,801 | |||||
Non-Controlling Interest | (34,849) | 25,793 | 22,833 | 76,328 | |||||
Total Comprehensive Income for the period | 220,562 | 226,863 | 1,303,444 | 830,129 | |||||
Basic Earnings/ (Loss) per Share (Rs.) | 1.23 | (0.18) | 3.96 | 2.01 | |||||
Dividend per Share (Rs.) | 1.50 | 0.18 | 1.50 | 0.18 |
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 | 31.03.2022 | 31.03.2021 | 31.03.2022 | 31.03.2021 | |||
Unaudited | Audited | Unaudited | Audited | ||||
Rs. '000 | Rs. '000 | Rs. '000 | Rs. '000 | ||||
ASSETS | |||||||
Non-Current Assets | |||||||
Property, Plant & Equipment | 6,303,509 | 5,043,655 | 4,672,577 | 3,639,867 | |||
Investment Property | 2,800 | 2,800 | - | - | |||
Intangible Assets | 208,047 | 240,233 | 13,063 | 42,170 | |||
Right of Use Asset | 147,800 | 139,463 | 241,170 | 257,467 | |||
Investments in Subsidiaries | - | - | 2,070,397 | 1,916,267 | |||
Other Financial Assets measured at Fair Value through OCI | 1,159,042 | 503,945 | 496,533 | 1,443 | |||
Other Financial Assets measured at Amortised Cost | - | 54,175 | - | - | |||
Investment in Equity Accounted Investees | - | 198,333 | - | 261,321 | |||
Deferred Tax Asset | 357,796 | 357,796 | - | - | |||
Total Non-Current Assets | 8,178,994 | 6,540,400 | 7,493,740 | 6,118,535 | |||
Current Assets | |||||||
Inventories | 3,718,830 | 2,819,376 | 1,594,120 | 966,819 | |||
Trade and Other Receivables | 3,012,962 | 2,560,854 | 94,549 | 57,204 | |||
Amount Due from Related Companies - Trade | - | - | 1,604,818 | 1,010,043 | |||
Amount Due from Related Companies - Non - trade | 84,347 | 279,725 | 333,651 | 741,636 | |||
Loans due from Related Parties | 252,332 | 164,232 | 189,332 | 131,232 | |||
Income Tax Recoverable | - | 16,069 | - | - | |||
Short term Investments | 43,532 | - | - | - | |||
Cash and Cash Equivalents | 1,626,806 | 711,400 | 583,715 | 8,341 | |||
Total Current Assets | 8,738,809 | 6,551,656 | 4,400,185 | 2,915,275 | |||
Total Assets | 16,917,803 | 13,092,056 | 11,893,925 | 9,033,810 | |||
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 | 2,647,175 | 2,965,733 | 2,300,647 | 2,057,599 | |||
Retained Earnings | 2,372,642 | 1,153,818 | 2,362,926 | 2,173,262 | |||
Equity Attributable to Equity Holders of the Company | 5,055,096 | 4,154,830 | 4,698,852 | 4,266,140 | |||
Non-Controlling Interest | 336,749 | 350,616 | - | - | |||
Total Equity | 5,391,845 | 4,505,446 | 4,698,852 | 4,266,140 | |||
Non-Current Liabilities | |||||||
Loans and Borrowings | 1,358,357 | 143,593 | 1,216,386 | 44,134 | |||
Lease Liabilities | 199,849 | 189,176 | 259,548 | 262,328 | |||
Deferred Income and Capital Grants | 4,008 | 4,268 | 4,008 | 4,268 | |||
Deferred Tax Liability | 642,380 | 572,090 | 496,123 | 442,769 | |||
Retirement Benefit Obligations | 1,067,363 | 968,081 | 734,482 | 645,971 | |||
Total Non-Current Liabilities | 3,271,957 | 1,877,208 | 2,710,547 | 1,399,470 | |||
Current Liabilities | |||||||
Loans and Borrowings | 4,412,383 | 2,176,732 | 2,862,926 | 1,570,745 | |||
Lease Liabilities | 34,107 | 30,164 | 22,276 | 25,053 | |||
Current Taxation Payable | 38,716 | 150,126 | 15,931 | 90,582 | |||
Trade and Other Payables | 3,036,878 | 3,238,218 | 812,684 | 943,769 | |||
Amount Due to Related Companies | 88,156 | 13,719 | 404,606 | 58,039 | |||
Bank Overdrafts | 643,761 | 1,100,443 | 366,103 | 680,012 | |||
Total Current Liabilities | 8,254,001 | 6,709,402 | 4,484,526 | 3,368,200 | |||
Total Equity and Liabilities | 16,917,803 | 13,092,056 | 11,893,925 | 9,033,810 | |||
Net Assets Value Per Share Rs. | 19.94 | 16.39 | 18.53 | 16.83 |
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 |
24th May 2022 |
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EB Creasy and Company plc published this content on 27 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2022 11:42:21 UTC.