Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» AAIC HAS BECOME THE BEST...NOW
by Yahapalanaya Today at 2:52 am

» Don’t care if the markets are going up, down or sideways. Find opportunities to make money.
by Asoka Samarakone Yesterday at 6:52 pm

» SRI LANKA @ 2020
by ruwan326 Yesterday at 12:37 pm

» Questionnaire on share market investor behaviour..!
by gayani2018 Yesterday at 8:52 am

» අනං## මනං ##
by ruwan326 Mon Jan 14, 2019 9:10 pm

» Daily Foreign Transactions
by heshan1997 Mon Jan 14, 2019 8:50 pm

» CROSSINGS TODAY
by ruwan326 Mon Jan 14, 2019 8:04 pm

» FOREIGN NEWS
by ruwan326 Mon Jan 14, 2019 8:02 pm

» Performance of the Market
by ruwan326 Mon Jan 14, 2019 7:57 pm

» Daily Stock Market Update
by Insights Equity Mon Jan 14, 2019 6:19 pm

» CSE net foreign inflows expected to rise as investors 'Look East'
by kalu351 Mon Jan 14, 2019 5:09 pm

» PLAYERS PICK OF THE DAY
by roshan1039 Mon Jan 14, 2019 3:22 pm

» intra day trading
by thu dam Mon Jan 14, 2019 12:51 pm

» CSE THIS WEEK
by ruwan326 Mon Jan 14, 2019 12:30 pm

» January dividend history (2010 to 2019)
by ruwan326 Mon Jan 14, 2019 11:24 am

» BFN කොටස් හිමීයන්ගේ අති විශේශ සභාව පෙරවාරි යේ ..
by kalu351 Mon Jan 14, 2019 10:45 am

» BFN WHY PRIVATE PLACEMENT PRICE IS 19.80
by kalu351 Mon Jan 14, 2019 10:30 am

» BFN EGM - FEB - BROKERS SAY FOR SURE PRICE WILL MOVE ABOVE 19-59 PRIVATE PLACEMNT PRICE SLOWELY SLOWELY
by kalu351 Mon Jan 14, 2019 10:24 am

» some banking sector valuations, looks under valued?
by arjunaupendra Mon Jan 14, 2019 10:07 am

» ##FUN TOONS###
by ruwan326 Mon Jan 14, 2019 9:12 am

» Chicken Run
by roshan1039 Mon Jan 14, 2019 7:24 am

» CTCE SHARE TO WATCH
by roshan1039 Mon Jan 14, 2019 6:33 am

» what are the shares to buy for short term ?
by roshan1039 Mon Jan 14, 2019 6:30 am

» Hayleys controlled Amaya, Carbotels set price of Hunas Falls stake at Rs. 696.35 Mn
by Miss-Sangeetha Sun Jan 13, 2019 8:35 pm

» JKH News & Reports
by ruwan326 Sun Jan 13, 2019 7:17 am

» We need a complete analysis on mid term direction of the CSE
by Yahapalanaya Sat Jan 12, 2019 10:16 pm

» How to Choose a Stock
by ruwan326 Sat Jan 12, 2019 9:35 pm

» HOTEL RUN FROM MONDAY
by roshan1039 Sat Jan 12, 2019 7:43 pm

» Weekly Stock Market Roundup
by Insights Equity Sat Jan 12, 2019 8:27 am

» Summary of Key Announcements during the week
by ruwan326 Fri Jan 11, 2019 8:01 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Ceylon Cold Stores Survives Another Difficult Quarter

Ceylon Cold Stores Survives Another Difficult Quarter

Go down  Message [Page 1 of 1]

DS Wijesinghe


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Daily Mirror 2018-07-26 09:57:59


The decline in consumer discretionary spending and shift in consumer demand for healthier alternatives appear to be continuing to hurt the performance of the John Keells group subsidiary, Ceylon Cold Stores PLC (CCS). 

The interim results released to the Colombo Stock Exchange showed that the company’s earnings have fallen by 65 percent to Rs.2.51 a share or Rs.238.9 million during the April-June quarter (1Q19) from the same period last year. 


CCS has interest in beverage, frozen food and retail sectors. The CCS share closed at Rs.920 during yesterday’s trading.


The group top line rose 13 percent year-on-year (YoY) to Rs.13.9 billion but the cost of sales increased at a faster rate of 19 percent YoY to Rs.12.7 billion. 


The gross profit fell by 25 percent YoY to Rs.1.2 billion and the operating profit fell by 53 percent YoY to Rs.457.9 million.

Once seen as a corporate leviathan, almost immune to economic headwinds, has since of late been grappling to regain its lost momentum but with limited success. 

The financial results and the tone of the recent commentary by the group key executives reflect that the company has been slow to respond to some of the rapid shifts in consumer tastes, particularly with regards to healthier alternatives.


CCS’s beverage sector under the Elephant House brand is the country’s biggest and for the year ended on March 31, 2018, the business volumes declined by 16 percent YoY. Apart from the weaker discretionary spending by the consumer, the sugar tax imposed on carbonated drinks in November last year too has had an adverse impact on the sales as the prices had to be increased.  


In April 2018, the company introduced it sugar-free CSD variant ‘Go Sugar Free’ with no calorific sugar content and a range of fruit juices under the brand ‘Fit O’. 


In a quite a surprising move, the company also introduced three flavours of ready-to-drink milk under the Elephant House brand and recently entered into the bottled drinking water market. 


The group’s manufacturing business, which houses beverage and frozen confectionaries such as ice cream, fared poorly as both revenues and profits declined. 


The segment revenue for the quarter was Rs.3.1 billion, compared to Rs.3.4 billion recorded for the same period last year, while the net profit fell to Rs.434.3 million, from Rs.698. million.


The segment’s finance cost rose to Rs.20.2 million from just Rs.508,000 as the company invested Rs.850.7 million during the three months. 


The company is set to begin the commercial operations of its Rs.4.2 billion new state-of-the-art ice cream manufacturing facility in the Seethawaka BOI zone, in 1Q19. 


Meanwhile, the company is also re-evaluating its earlier plans for the installation of a new bottling line due to the lower capacity utilisation in the current facility, after the volumes fell in response to the sugar tax. 


The group’s retail business reported a top line of Rs.10.9 billion, up from Rs.9.0 billion but the profit fell sharply to Rs.95.6 million, from Rs.277.1 million.


CCS operates 80 ‘Keells’-branded supermarkets managed by the subsidiary, Jaykay Marketing Services (Private) Limited. 


During last year, the company developed a new brand identity for its supermarket chain to epitomize its fresh produce after extensive research and with support of an international consultancy. 


The segment incurred a finance cost of Rs.43.5 million, up from Rs.1.6 million a year ago. 
CCS spent Rs.1.1 billion of capital expenditure, almost double from a year ago. 


Jaykay Marketing Services (Private) Limited is spending Rs.3.2 billion in a 225,000 square feet centralized distribution centre to enhance operational processes and particularly to strengthen the supply chain, while preserving the freshness of its supplies. 


As of June 30, 2018, John Keells Holdings held a 70.66 percent stake in CCS, while the related party Whittal Boustead (Pvt.) Ltd held another 10.70 percent stake.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum