CIC Holdings record profits

CIC Holdings PLC has recorded a group post tax profit of Rs 1.17 billion which is an increase of 57 percent in profit compared to last year. The group turnover recorded an increase of Rs 4.4 billion, an improvement of 26.7 percent over last year's performance.

B.R.L. Fernando

This year for the first time the group marked significant financial results by posting Rs one billion on the profitability after tax. Animal feed, poultry, agriculture and food oriented business provided the bulk of the increase. The group also benefited to an extent of Rs 188 million with the reduction in interest rates. The company invested Rs 33 million in agricultural research excluding extension services, CIC Holdings PLC Chairman, B.R.L. Fernando said.

CIC Holdings PLC, marked a growth in post tax profit of Rs 64.7 million, an increase of 18.9 percent over the last year. Turnover increased by Rs 1.4 billion, which is a growth of 40 percent with crop solutions, consumer and healthcare gathering growth momentum.

The consolidated turnover, gross profit and net profit recorded a growth of 26.7 percent, 42.9 percent and 56.6 percent which are the highest during the last five years.

The market capitalization too doubled during the year. Voting and non-voting ordinary shares posted a capital appreciation of 127.9 percent and 146.9 percent. The group return on equity (ROE) has increased from 11.7 percent to 14 percent this year. CIC has continuously maintained a dividend yield beyond the market norms to compensate the shareholders. For the financial year 2010/2011 CIC maintained a dividend yield of 1.8 percent and 2.5 percent for voting and non-voting ordinary shares. CIC proposed a final dividend of Rs two per share for the recently concluded financial year which makes a cumulative annual dividend of Rs 2.75 per share with a 48.6 percent growth over 2009/2010.

CIC Holdings PLC Managing Director and CEO, S.P.S Ranatunga told Daily News Business that the name change of the company to CIC Holdings PLC was approved by the shareholders in December last year.

The company has initially invested Rs 15 to 20 million as the brand investment. The company will invest on brand expansion in phases in years to come.

(CdeS)