COVID Restrictions To Blame For CCS 1Q Performance 
Posted 25,July

By Chaveendra Dunuwille

In Local News

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Ceylon Cold Stores PLC (CCS) lost its momentum in its top and bottom lines during the three months ended in June 30 (1Q22) as the virus-induced restrictions buffeted its gains, though the performance was higher compared to the year earlier period, characterized mostly by the widespread lockdowns in 2020. 

Sri Lanka’s largest listed food and beverage entity by revenue and market value reported revenues of Rs.18.15 billion for the three months ended in June 30, 2021, up 47 percent from the same period in 2020. But this increase in revenue should be looked at in the context of lower base effect, as the first COVID-19 related lockdown in 2020 erased a third of the group’s revenue. 

However, the consumer goods manufacturer and retailer was seen quickly adapting to the fresh restrictions re-imposed since May this year as it attempted to divert sales into its e commerce platform to make up for the lost sales and footfall at its supermarket chain due to stay-at-home orders. The group reported revenues of Rs.18.96 billion during the January – March quarter driven by the robust consumer demand after the easing of restrictions. The group’s manufacturing operations, which consist of Elephant House branded beverage and frozen confectionary portfolio reported revenues of Rs.3.23 billion for the three months, up nearly 30 percent from a year ago but the segment earnings slumped to Rs.36.3 million compared to Rs.100.4 million in the same period last year. 

Meanwhile, the group’s retail business operated via its 123 plus supermarkets reported revenues of Rs.15.1 billion compared to Rs.9.97 billion in the year earlier period, which is also slightly up from Rs.14.48 billion in the March quarter. This segment reported earnings of Rs.54.4 million compared to a loss of Rs.454.6 million in the year ago period but down markedly from the earnings of Rs.344.5 million reported in the March quarter. The group reported consolidated earnings of Rs.1.17 a share or Rs.111.2 million for the April – June 2021 quarter compared to a loss per share of Rs.3.68 or consolidated loss of Rs.349.9 million a year ago. However, in the March quarter, the group reported earnings of Rs.14.31 a share or Rs.1.36 billion in total earnings. John Keells Group owns over 80 percent of CCS.