July 01, Colombo: Cargills (Ceylon PLC) has reported its financial results for the period ended 31st March 2020.

The market conditions this past quarter have been favorable, with economic activity showing improvements following the introduction of favorable fiscal policies aimed at boosting consumption. However, consumer activity and business confidence was hampered by the outbreak of the COVID-19 pandemic in the final weeks of March 2020, the Group said.

During the year ended 31st March 2020, the Group’s revenue was recorded at Rs. 107,052 million at a growth of 13.09% YoY. Moreover, robust growth was achieved in the Group’s operating profit (50.79% YoY to Rs. 7,061 million) in conjunction with growth in profit after tax (35.78% YoY to Rs. 2,761 million).

In the year under review, Retail revenue grew by 13.13% YoY to Rs. 83,720 million and operating profit by 97.59% YoY to Rs. 2,937 million. With the Retail footprint broadening to 411 outlets at the close of March, rising footfall due to the gradual growth in consumer confidence enabled the Retail sector to show same store sales growth during the year.

Robust growth was achieved in the Fast Moving Consumer Goods (FMCG) segment which was primarily driven by the Dairy sector performance.

Recording a top-line of Rs. 19,179 million at a growth of 14.26% YoY plus, sectoral operating profit was recorded at Rs. 3,346 million, up 27.12% YoY.

Rising consumer demand for the locally sourced and produced goods throughout the year, along with expansion in the Cheese and Butter categories gave way to Dairy being the strongest performer in the FMCG segment. This sustained surge of the FMCG segment enables the Group to further grow the categories through innovation.

The Restaurant sector performance remained subdued during this period with revenue growing at 7.2% YoY to Rs. 4,152 million and operating profit at 15.04% YoY to Rs. 367 million. Overall YoY consumption has been favorable, enabling KFC to maintain its position as the most popular QSR chain in the country, with 40 outlets in operation.

Despite the challenging external environment, the Group has been able to maintain its position while ensuring its obligation to its stakeholders. The first quarter of the ongoing financial year bore the brunt of the impact from COVID-19, but steps have been taken to recover from this position. The steps taken in response to the pandemic, focused on providing goods and services to the public as far as possible in a safe environment while also ensuring the safety and welfare of the staff.

Post COVID-19, the Group remains optimistic towards the future and sees great opportunities to further consolidate and grow the brand “Cargills” in the hearts and minds of the people.