Financial Times - Cargills to expand supermarket chain

Cargills to expand supermarket chain

Cargills (Ceylon) Ltd, owning a chain of supermarkets, says that its growth in the food processing business has had a positive impact on the dairy, agriculture and livestock industries in the country and plans are underway to give further impetus to these industries by pursuing ‘relevant’ business opportunities.

Cargills Deputy Chairman Ranjit Page (centre) and officials standing to attention at the recent "Cargills Pledge – Taking the company and country forward" at the recent staff annual day held in Colombo.

The company also said that with the steady rise of disposable income amongst the youth and the changing lifestyles, there is a lot of scope for a few more outlets (KFC/Ice Cream parlours) to be opened in the coming years.

Group turnover was Rs 14.2 billion, up 33 percent from Rs 10.7 billion in the previous year while Cargills turnover showed a 12 percent gain at Rs 8.2 billion.

Post tax profits for the group was Rs 169.09 million against Rs 157.8 million in 2004-05 while company post-tax profits were Rs 150.1 million, down from Rs 167.9 million earlier.

Companies in the group are Cargills Quality Foods, Cargills Distributors, Cargills Quality Dairies, Cargills Food Processors, Cargills, Food Services, CPC Agrifoods, CPC Lanka and Cargills Retail.

Company chairman Anthony (Baba) Page, said in his annual review that customers across Sri Lanka were experiencing a paradigm shift in their shopping style with the company offering the benefits of better prices, convenience and food safety. “We are indeed pleased to be leading the way in providing these benefits to people,” he said.

The chairman said the company’s business philosophy actively encourages and promotes sourcing from rural areas and a large segment of society – particularly the not-so-affluent has been the beneficiary of this policy.

The company during the year under review acquired the Sentra and Park N Shop supermarket chains (a total of nine supermarkets) through a purchase of assets and brand and trade marks.

He said the usage of fresh milk in Cargills Magic ice cream contributed to the development of the dairy industry in the vicinity of the factory.

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