CIC Holdings delivers solid 2Q performance

CIC Holdings PLC reported some solid financial performance for the September quarter (2Q21), continuing the momentum as most of its business segments are either geared to weather the pandemic’s effects or they are in fact helped by the new conditions. 

The diversified conglomerate has roots deep into the agriculture sector, including crop solutions and livestock and is also in health and personal care business. 

The group reported earnings of Rs.7.60 a share or Rs.719.87 million in July-September quarter compared to Rs.2.34 a share or Rs.222.21 million a year ago. 

While profits at the operating level was far better a year ago, the bottom line also received some tangible boost from the significantly lower finance cost, as the group paid down debt and may have also benefitted from the falling borrowing costs in the economy. 

The group’s finance cost fell from Rs.445.50 million to Rs.78.78 million during the period under review.
The group revenue for the three months was Rs.9.13 billion, up 16 percent from a year ago.

The group delivered equally better performance during the three months to June, its first fiscal quarter, with substantially higher revenues and profits defying the coronavirus lockdowns, which hampered the operations of most other businesses. 

For the six months to September, the group reported earnings of Rs.1.1 billion on revenues of Rs.17 billion compared to earnings of Rs.327 million and revenues of Rs.14.6 billion in the comparable period in 2019. 
The group is also yielding positive results from its roughly three-year long resetting exercise, which it embarked on to identify optimal businesses and product 

mix for the entity. For the six months to September, the crop solutions business, which comprises of plant nutrients, seeds and agro-chemicals, reported Rs.5.6 billion in revenues and Rs.1.1 billion operating profits compared to Rs.4.0 billion in revenues and Rs.595 million in profits a year ago. 

The company attributes this performance to the stronger government patronage on the agricultural sector and the favourable weather conditions prevailed during the period. 

Meanwhile, the health and personal care business of the group generated revenues of Rs.4.1 billion and earned profits of Rs.525 million for the six months, up from Rs.4.0 billion in revenues and Rs.408 million in operating profits in the year earlier period. 

Paints & General Industries Limited owned by the Captain family has 53.31 percent stake in CIC Holdings while the Employees’ Provident Fund (EPF) has 9.06 percent stake being its second largest shareholder. 

EPF also has 12.7 percent stake in the company’s non-voting shares being the single largest shareholder.