Business Times

Revenues up 45% YoY for Lankem-controlled CW Mackie

Local food distributor and rubber exporter CW Mackie has recorded a 45.32% year-on-year increase in consolidated revenue to Rs. 6.71 billion for the 12 months to end-December 2010. However, consolidated cost of sales for the same period also increased correspondingly, at 50.32% year-on-year, to Rs. 6.28 billion, which ultimately resulted in a year-on-year fall in gross profit of 1.67% to Rs. 437.06 million.

Overall, consolidated profit after tax for the period increased by 26.19% to Rs. 149.75 million.
In terms of the company's fourth quarter, the three months to end-December 2010; consolidated revenue increased by 32.95% year-on-year to Rs. 1.73 billion while cost of sales had also gone up by 36.50% year-on-year to Rs. 1.65 billion. This led to a year-on-year 13.57% fall in gross profit to Rs. 79.87 million, compared to 2009's fourth quarter figure of Rs. 92.41 million. On the other hand, while the company was privy to a consolidated loss after tax equalling Rs. 34,000, this is in contrast to Rs. 8.28 million in losses for the corresponding period the year before, the company said in a statement.

Additionally, segmental information indicated in the financials revealed that, while both the firm's export trading and domestic trading revenues had risen sharply in 2010, to Rs. 1.56 billion and Rs. 4.65 billion respectively; only domestic trading activities had shown increased profitability to Rs. 404.14 million from Rs. 256.14 million in 2009, while profits from exports had fallen to Rs. 13.28 million from Rs. 317.57 million in 2009. At the same time, both revenues and profits at the company's manufacturing for exports arm have dropped since last year.

However, the reduction in profitability was mitigated somewhat by significant cost cutting with regards to operating overheads and finance costs.

Meanwhile, these financial results are particularly noteworthy as they showcase performance of the first full financial year as reported by the company, which is widely known as the distributor for Sunquick as well as its rubber exports and sugar imports, following a controlling stake being acquired in it by Lankem (33.88%) and Lankem associate Kotagala Plantations (19.89%) at Rs. 35 per share; reportedly a Rs. 712 million total value.

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