The Richard Pieris Group (RPG) got a pounding with the collapse in commodity prices when it recorded a Rs 271 million loss for the third quarter ended 31st December 2008 against the Rs 185 million loss for the same time in 2007.
“This loss is up by 47% which is mostly due to the crash seen in the commodities such as rubber and tea,” an analyst said.
He said the company is sitting on a Rs 6.7 billion debt. “This is excluding the plantation leases,” he said. A senior RPG official said the company will continue its business as usual and will not venture into new areas. He said it is not likely that RPG will dispose some of its fixed assets to counter the debt issue.. “Right now we do not see any such opportunities,” he added.
RPG Chairman Sena Yaddehige in his statement said the group will concentrate on its core business and restructure or exit from marginal businesses with limited potential. “In this challenging environment increased emphasis is placed on overheads, working capital and cash flow management,” he has said.
The company’s turnover was Rs.5.1 billion for this quarter which was 14% below the corresponding period of the previous year.
The rubber sector recorded an operating profit of Rs.58.2 million during the nine months ended 31st December 2008. The retail sector saw a turnover of Rs.6.7 billion and an operating profit of Rs.452 million during the nine months ended December 31, 2008. |
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