LION BREWERY (CEYLON) PLC Lion Brewery (Ceylon) PLC
Interim Condensed Financial Statements for the First Quarter ended
30 th June 2022
LION BREWERY (CEYLON) PLC
Review
The quarter under review witnessed soaring inflation driving up prices of all essential commodities, supply chain disruptions due to fuel shortages and civil unrest disrupting the marketplace. The free float of the US Dollar in March resulted in an unprecedented devaluation of the SLR which impacted the cost of imports. Most FMCG businesses took sharp price increases to negate the impact of rising cost of inputs resulting in volumes being impacted whilst also suffering from supply chain disruptions due to fuel shortages.
The Company too experienced sharp cost increases across all inputs resulting in price adjustments to reduce margin contraction. It should be noted that the impact of the rising cost base was not fully recovered through pricing as it was important to balance volume due to reducing consumer income. In terms of overall performance, the prior year quarter was heavily impacted by Covid related lockdowns during which sale of beer was prohibited. Volumes were weaker compared to the March quarter as the economy deteriorated. Nonetheless, International Business continued to grow volumes in the high double digits.
Volume trends required the carrying value of the Miller brands to be re‐examined resulting in a further impairment amounting to Rs. 353 million. This is in addition to the Rs. 464 million impairment taken in March 2022.
During the quarter, the company paid Rs. 15 billion in taxes to Government compared to Rs. 8bn in the prior year. This included the VAT increase midway during the quarter. The company did not benefit from the 2019 VAT reduction and, as such, this represents entirely incremental revenue to Government.
Given the prevailing environment, tax evasion and consumer trade down to illicit/illegal products will increase. We have requested Government to urgently further its efforts in connection with the tax stamp implementation to address critical gaps, including continuing operational hurdles.
We wish to acknowledge the Government policy directive to grant approval to sell wine & beer in establishments registered with the Sri Lanka Tourism Development Authority. It will support these businesses, mostly SME in nature, to provide a broader value proposition to their customers as the tourism industry recovers. This step will have a secondary benefit of curtailing space for illegal products and tax evasion.
LION BREWERY (CEYLON) PLC
BOARD OF DIRECTORS AS AT 30TH JUNE 2022
Mr. D. A. Cabraal (Chairman)
Mr. H. Selvanathan (Deputy Chairman)
Mr. R. H. Meewakkala (CEO/Director) Mr. D. C. R. Gunawardena
Mr. K. Selvanathan (Director / Alternate Director to H. Selvanathan) Mr. D. R. P. Goonetilleke
Mrs. S. J. F. Evans
Mr. S. Selvanathan
Mr. S. Clini
Ms. V. Gun
LION BREWERY (CEYLON) PLC
CONDENSED STATEMENT OF FINANCIAL POSITION
Company | Group | |||||
In Rs.'000s | 30‐Jun‐22 | 31‐Mar‐22 | 30‐Jun‐22 | 31‐Mar‐22 | ||
(Adjusted) | (Adjusted) | |||||
ASSETS | ||||||
Non‐ Current Assets | ||||||
Property, plant & equipment | 18,486,448 | 18,829,387 | 20,195,616 | 20,542,588 | ||
Right of use assets | 143,667 | 151,914 | 143,667 | 151,914 | ||
Intangible assets | 395,297 | 750,093 | 395,297 | 750,093 | ||
Investments in subsidiary | 1,029,623 | 1,029,623 | ‐ | ‐ | ||
Total Non‐Current Assets | 20,055,035 | 20,761,017 | 20,734,580 | 21,444,595 | ||
Current Assets | ||||||
Inventories | 6,319,792 | 4,438,517 | 6,319,792 | 4,438,517 | ||
Trade and other receivables | 4,117,848 | 1,791,119 | 4,123,801 | 1,796,357 | ||
Amounts due from related companies | 386,154 | 374,178 | 386,154 | 374,178 | ||
Cash and cash equivalents | 5,475,827 | 12,889,986 | 5,607,870 | 13,013,232 | ||
Total Current Assets | 16,299,621 | 19,493,800 | 16,437,617 | 19,622,284 | ||
Total Assets | 36,354,656 | 40,254,817 | 37,172,197 | 41,066,879 | ||
EQUITY AND LIABILITIES | ||||||
Equity | ||||||
Stated capital | 2,537,801 | 2,537,801 | 2,537,801 | 2,537,801 | ||
Capital reserves | 1,487,870 | 1,487,870 | 2,092,103 | 2,092,103 | ||
Retained earnings | 14,734,329 | 14,463,588 | 14,380,306 | 14,103,793 | ||
Total Equity | 18,760,000 | 18,489,259 | 19,010,210 | 18,733,697 | ||
Non‐ Current Liabilities | ||||||
Loans and borrowings | 2,121,830 | 2,300,311 | 2,121,830 | 2,300,311 | ||
Lease creditor (Note 04) | 154,162 | 160,546 | 154,162 | 160,546 | ||
Employee benefits | 179,271 | 173,704 | 179,271 | 173,704 | ||
Net deferred tax liabilities | 4,402,992 | 4,660,920 | 4,966,109 | 5,225,626 | ||
Total Non‐ Current Liabilities | 6,858,255 | 7,295,481 | 7,421,372 | 7,860,187 | ||
Current Liabilities | ||||||
Trade and other payables | 3,818,112 | 3,234,345 | 3,819,699 | 3,235,794 | ||
Amounts due to related companies | 153,717 | 155,756 | 153,717 | 155,756 | ||
Refundable deposits | 2,318,408 | 2,301,181 | 2,318,408 | 2,301,181 | ||
Current tax liabilities | 3,168,392 | 4,310,082 | 3,171,019 | 4,311,551 | ||
Loans and borrowings | 1,252,709 | 3,347,696 | 1,252,709 | 3,347,696 | ||
Lease creditor (Note 04) | 25,063 | 24,531 | 25,063 | 24,531 | ||
Bank overdrafts | ‐ | 1,096,486 | ‐ | 1,096,486 | ||
Total Current Liabilities | 10,736,401 | 14,470,077 | 10,740,615 | 14,472,995 | ||
Total Liabilities | 17,594,656 | 21,765,558 | 18,161,987 | 22,333,182 | ||
Total Equity and Liabilities | 36,354,656 | 40,254,817 | 37,172,197 | 41,066,879 | ||
Net assets per ordinary share (Rs.) | 234.50 | 231.12 | 237.63 | 234.17 |
The above figures are provisional and subject to audit.
These financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007.
(Sgd.)
J.N. Goonaratne
Financial Controller‐Corporate
The Board of Directors is responsible for the preparation and presentation of these Financial Statements.
Approved and signed on behalf of the Managers | Approved and signed on behalf of the Board | |
(Sgd.) | (Sgd.) | (Sgd.) |
V. R. Wijesinghe | R.H. Meewakkala | D.R.P. Goonetilleke |
Director | Director | Director |
Carsons Management Services (Private) Limited | ||
10th August 2022 |
LION BREWERY (CEYLON) PLC
CONDENSED STATEMENT OF COMPREHENSIVE INCOME ‐ COMPANY
In Sri Lankan Rs.'000s | Quarter Ended | Change | Year Ended | |||||
30.06.2022 | 30.06.2021 | % | 31.03.2022 | |||||
(Audited) | ||||||||
Revenue | 21,310,618 | 10,557,138 | 102 | 58,570,885 | ||||
Cost of sales | (16,749,293) | (8,657,550) | 93 | (47,520,726) | ||||
Gross profit | 4,561,325 | 1,899,588 | 140 | 11,050,159 | ||||
Other income | 70,593 | 32,563 | 117 | 189,598 | ||||
4,631,918 | 1,932,151 | 140 | 11,239,757 | |||||
Distribution expenses | (1,079,978) | (531,305) | 103 | (2,865,746) | ||||
Administrative expenses | (511,603) | (389,885) | 31 | (2,122,587) | ||||
Other expenses | (333,425) | (91,770) | 263 | (480,695) | ||||
Impairment of intangible assets | (353,229) | ‐ | 100 | (463,578) | ||||
Operating profit before finance cost | 2,353,683 | 919,191 | 156 | 5,307,151 | ||||
Finance income | 286,277 | 140,900 | 103 | 644,827 | ||||
Finance costs | (70,751) | (207,851) | (66) | (389,793) | ||||
Net finance income /(cost) | 215,526 | ( 66,951) | (422) | 255,034 | ||||
Profit before taxation | 2,569,209 | 852,240 | 201 | 5,562,185 | ||||
Income tax expense | (1,176,396) | (303,749) | 287 | (2,214,371) | ||||
Deferred taxation | 257,928 | 65,534 | 294 | 347,440 | ||||
Profit after taxation | 1,650,741 | 614,025 | 169 | 3,695,254 | ||||
Other comprehensive income | ||||||||
Items that will not be reclassified to profit or loss | ||||||||
Remeasurement of employee benefit obligations | ‐ | ‐ | ‐ | 45,763 | ||||
Deferred tax charge on actuarial gain | ‐ | ‐ | ‐ | (18,305) | ||||
Revaluation gain on land & buildings | ‐ | ‐ | ‐ | 858,170 | ||||
Deferred tax charge on land and building revaluation | ‐ | ‐ | ‐ | (343,268) | ||||
Total other comprehensive income for the period net of tax | ‐ | ‐ | ‐ | 542,360 | ||||
Total comprehensive income for the period | 1,650,741 | 614,025 | 169 | 4,237,614 | ||||
Earnings per ordinary share (Rs.) | 20.63 | 7.68 | 46.19 |
The above figures are provisional and subject to audit.
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Lion Brewery Ceylon plc published this content on 12 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2022 11:04:11 UTC.
