CIC quarterly profit rises 20% as tax charge falls

Daily Mirror reports that CIC Holdings PLC’s profit attributable to shareholders rose 20.3%, with a lower tax charge lifting the result despite pressure on margins and a decline in operating profit. EconomyNext reports net profit of Rs. 1.66 billion for the quarter ended September 30, compared with Rs. 1.38 billion in the same period a year earlier. It also reports basic earnings per share increased to Rs. 0.87 from Rs. 0.73.

EconomyNext reports quarterly revenue grew 3.4% to Rs. 20.89 billion, supported by growth in industrial solutions, livestock and healthcare, which offset relatively softer demand for agricultural inputs. Cost of sales rose 5.3% to Rs. 15.20 billion, and gross profit edged down 1.2% to Rs. 5.68 billion.

EconomyNext says results from operating activities declined 7.3% to Rs. 2.66 billion from Rs. 2.87 billion, amid higher operating expenses. It reports selling expenses rose 6.8% to Rs. 2.15 billion, general and administrative expenses increased 5.8% to Rs. 1.07 billion, and other operating income fell 29.6% to Rs. 117.40 million. An Rs. 85.83 million reversal of impairment on trade receivables also supported operating results, compared with a provision of Rs. 23.38 million a year earlier.

EconomyNext reports net finance costs increased 35.4% to Rs. 712.25 million, as finance expenses rose 30.8% to Rs. 771.46 million. It attributes the higher finance expenses mainly to interest on borrowing used to fund increased working-capital and inventory needs. The outlet also reports profit from equity-accounted investees rose to Rs. 590.50 million from Rs. 257.87 million, driven by increased profits at John Keells Holdings PLC.