E B Creasy mpany : Quarterly Financial Report as of 31.12.2021

E. B. Creasy & Company PLC (PQ 182)

INTERIM FINANCIAL STATEMENTS

For the Nine Months ended 31st December 2021

First Nine Months Performance Review - Financial Year 2021-22

E. B. Creasy & Company PLC (EBC) and its subsidiaries delivered strong first nine months results driven by the Group's commitment to serve its customers in the core segments, Homecare, Personal care, Health care and food ingredient sector amidst a challenging economic environment. Headwinds from higher global commodity costs, freight costs, and inflationary pressure in Sri Lanka coupled with numerous unprecedented challenges on foreign exchange impacted on our Group margins. However, the Group continues to execute its strategies to minimize disruptions to supply chains with persistent focus on working capital efficiencies and cost rationalization measures. Against a challenging operating environment, we are encouraged by the progress we have made in the first nine months of the financial year.

The cumulative Group revenue and profit before tax stood at Rs.12.5 billion and Rs.893.8 million respectively, both reporting an increase of 29 per cent and 22 per cent respectively over the previous year. During the quarter, underlying business grew by 36 per cent over the previous year's comparative quarter. The Group profit before tax of Rs. 465 million for Q3 FY 2021-22 signified a quarter-on-quarter increase of 19 per cent. This shows our team's uncompromising efforts to push forward during challenging times and accomplish Group's growth aspirations, whilst making sure that we do our best to serve our communities.

The Group's Home care and Personal care segments continued a notable volume-led growth momentum with general trade channel showing a steady progress. Group's healthcare and food ingredient businesses recorded outstanding results in revenue and profitability over the previous year. In an ongoing effort to expanding Group's business operation and minimizing possible operational risks, the Company acquired a property at Gonawala, Sapugaskanda to set up additional manufacturing facilities and warehousing space. As such, we completed a new mosquito repellent plant at Gonawala premises to cater to the growing demand. We are also planning to increase our storage capacity at this location.

The present business climate has presented a new set of challenges to our teams, which demands innovation, agility and a sense of urgency to respond swiftly to shifts and changes in the external environment. The Group remains determined to fulfill its aspiration of delivering sustainable and profitable growth to maintain acceptable levels of return on capital employed, while ensuring our commitment towards our valued stakeholders.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

COMPANY

	Quarter Ended			Nine Months Ended
For the period ended 31st December	2021	2020	Variance	2021	2020	Variance
	Rs. '000		Rs. '000	%		Rs. '000		Rs. '000	%
Revenue	1,685,758	1,348,012	25%		4,056,823	3,775,880	7%
Cost of Sales	(1,195,117)		(871,990)	37%		(2,910,047)		(2,575,873)	13%
Gross Profit	490,641	476,022	3%		1,146,776	1,200,007	-4%
Other Income	4,570	3,892	17%		12,670	8,366	51%
Selling and Distribution Expenses	(131,441)	(151,646)	-13%		(238,171)	(296,881)	-20%
Administrative Expenses	(151,630)	(117,718)	29%		(444,007)	(374,233)	19%
Net Finance Expenses	(27,645)	(37,749)	-27%		(124,175)	(122,710)	1%
Profit before Tax	184,495	172,801	7%		353,093	414,549	-15%
Income Tax Expense	(33,204)	(31,103)	7%		(63,556)	(74,618)	-15%
Profit for the Period	151,291	141,698	7%		289,537	339,931	-15%
Other Comprehensive Income/(Expense)
Items that will not be reclassified to Profit or Loss
Remeasurement of Retirement Benefit Obligation (net of tax)	(2,411)	(2,411)	0%		(7,233)	(7,233)	0%
Equity investment at FVOCI - Net Changes in Fair Value	278,556	(74)	376527%		274,854	(241)	114147%
Other Comprehensive Income/(Expense) for the period, net of tax	276,145		(2,485)	11212%		267,621		(7,474)	3681%
Total Comprehensive Income for the period	427,436		139,213	207%		557,158		332,457	68%
Basic Earnings per Share (Rs.)	0.60	0.56			1.14	1.34
Dividend per Share (Rs.)	1.00	0.18			1.00	0.18

Figures in brackets indicate deductions.

The above figures are provisional and subject to audit.

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

CONSOLIDATED

	Quarter Ended			Nine Months Ended
For the period ended 31st December	2021	2020	Variance	2021	2020	Variance
	Rs. '000		Rs. '000	%		Rs. '000		Rs. '000	%
Revenue	4,822,858	3,544,810	36%		12,479,559	9,694,383	29%
Cost of Sales	(3,356,943)		(2,313,508)	45%		(8,919,855)		(6,483,107)	38%
Gross Profit	1,465,915	1,231,302	19%		3,559,704	3,211,276	11%
Other Income / (Expenses)	17,852	(5,657)	416%		51,087	3,085	1556%
Selling and Distribution Expenses	(516,182)	(337,540)	53%		(1,226,085)	(771,776)	59%
Administrative Expenses	(418,327)	(428,185)	-2%		(1,186,902)	(1,253,181)	-5%
Net Finance Expenses	(84,229)	(67,747)	24%		(329,499)	(313,721)	5%
Share of Results of Equity Accounted Investees	-		(2,644)	100%		25,505		(144,406)	118%
Profit before Tax	465,029	389,529	19%		893,810	731,277	22%
Income Tax Expense	(71,599)	(47,333)	51%		(141,014)	(127,017)	11%
Profit for the period	393,430	342,196	15%		752,796	604,260	25%
Other Comprehensive Income/(Expense)
Items that will not be reclassified to Profit or Loss
Remeasurement of Retirement Benefit Obligation (net of tax)	(6,251)	(4,256)	47%		(12,768)	(12,768)	0%
Equity investment at FVOCI - Net Changes in Fair Value	331,564	4,372	7484%		342,854	5,882	5729%
Items that are or may be reclassified subsequently to Profit or Loss
Share of Other Comprehensive Income of Equity Accounted Investees, net of tax	-	862	-100%		-	5,892	-100%
Other Comprehensive Income/(Expense) for the period, net of tax	325,313		978	33163%		330,086		(994)	33308%
Total Comprehensive Income for the period	718,743	343,174	109%		1,082,882	603,266	80%
Profit Attributable to:
Equity Holders of the parent	364,227	311,709			693,829	556,118
Non-Controlling interest	29,203		30,487			58,967		48,142
Profit for the period	393,430	342,196			752,796	604,260
Total Comprehensive Income attributable to:
Equity Holders of the parent	689,331	311,752			1,025,200	552,731
Non-Controlling interest	29,412		31,422			57,682		50,535
Total Comprehensive Income for the period	718,743		343,174			1,082,882		603,266
Basic Earnings per Share (Rs.)	1.44	1.23			2.74	2.19
Dividend per Share (Rs.)	1.00	0.18			1.00	0.18

Figures in brackets indicate deductions.

The above figures are provisional and subject to audit.

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STATEMENT OF FINANCIAL POSITION

	GROUP	COMPANY
As at	31.12.2021	31.03.2021		31.12.2021	31.03.2021
	Unaudited		Audited	Unaudited		Audited
	Rs. '000		Rs. '000	Rs. '000		Rs. '000
ASSETS
Non-Current Assets
Property, Plant & Equipment	5,808,581	5,043,655		4,325,233	3,639,867
Investment Property	2,800	2,800		-	-
Intangible Assets	213,730	240,233		17,897	42,170
Right of Use Asset	146,468	139,463		245,237	257,467
Investments in Subsidiaries	-	-		1,915,477	1,916,267
Other Financial Assets measured at Fair Value through OCI	1,334,350	503,945		607,434	1,443
Other Financial Assets measured at Amortised Cost	-	54,175		-	-
Investment in Equity Accounted Investees	-	198,333		-	261,321
Deferred Tax Asset	357,796		357,796		-		-
Total Non-Current Assets	7,863,725	6,540,400		7,111,278	6,118,535
Current Assets
Inventories	3,770,946	2,819,376		1,476,361	966,819
Trade and Other Receivables	2,919,850	2,560,854		38,396	57,204
Amount Due from Related Companies - Trade	-	-		1,952,689	1,010,043
Amount Due from Related Companies - Non - trade	144,182	279,725		459,635	741,636
Loans due from Related Parties	265,641	164,232		202,641	131,232
Income Tax Recoverable	-	16,069		-	-
Short term Investments	284,451	-		-	-
Cash and Cash Equivalents	1,131,403		711,400		85,391		8,341
Total Current Assets	8,516,473		6,551,656		4,215,113		2,915,275
Total Assets	16,380,198	13,092,056		11,326,391	9,033,810
EQUITY AND LIABILITIES
Equity
Stated Capital	25,731	25,731		25,731	25,731
General Reserves	9,548	9,548		9,548	9,548
Revaluation Reserve	2,335,904	2,965,733		2,057,599	2,057,599
Retained Earnings	2,555,301		1,153,818		2,476,874		2,173,262
Equity Attributable to Equity Holders of the Company	4,926,484	4,154,830		4,569,752	4,266,140
Non-Controlling Interest	387,358		350,616		-		-
Total Equity	5,313,842	4,505,446		4,569,752	4,266,140
Non-Current Liabilities
Loans and Borrowings	1,361,463	143,593		1,182,729	44,134
Lease Liabilities	198,735	189,176		260,344	262,328
Deferred Income and Capital Grants	4,073	4,268		4,073	4,268
Deferred Tax Liability	572,534	572,090		442,769	442,769
Retirement Benefit Obligations	1,048,284		968,081		704,699		645,971
Total Non-Current Liabilities	3,185,089	1,877,208		2,594,614	1,399,470
Current Liabilities
Loans and Borrowings	3,160,494	2,176,732		2,165,725	1,570,745
Lease Liabilities	33,902	30,164		22,952	25,053
Current Taxation Payable	81,381	150,126		54,317	90,582
Trade and Other Payables	3,840,738	3,238,218		1,124,478	943,769
Amount Due to Related Companies	54,222	13,719		436,780	58,039
Bank Overdrafts	710,530		1,100,443		357,773		680,012
Total Current Liabilities	7,881,267		6,709,402		4,162,025		3,368,200
Total Equity and Liabilities	16,380,198		13,092,056		11,326,391		9,033,810
Net Assets Value Per Share Rs.	19.43	16.39		18.02	16.83

The above figures are provisional and subject to audit.

I certify that these Financial Statements are prepared in compliance with the requirements of the Companies Act No.7 of 2007.

-

SGD

Ravi Rathnasekara Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

These Financial Statements were approved and signed for and on behalf of the Board of Directors of E. B. Creasy & Company PLC.

SGD	SGD
R.C.A.Welikala	S.W.Gunawardena
Director	Director
10th February 2022

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