Ceylon Cold Stores 3Q revenue intact despite virus disruptions

Ceylon Cold Stores PLC (CCS) reported robust top and bottom line performances for the three months ended December 2020 (3Q21), as the company managed to maintain its revenues intact despite the sporadic COVID-19 related lockdowns, which impacted consumer spending.

CCS, Sri Lanka’s largest listed food and beverage entity by revenue and market value reported revenues of Rs.18.9 billion for the October-December 2020 period, logging 6 percent year-on-year (YoY) growth.

In the September quarter (2Q21), the company reported revenues of Rs.18.4 billion. CCS reported earnings of Rs.5.35 a share or Rs.508.2 million for the three months under review compared to Rs.5.99 a share or Rs.569.2 million in the comparable period in 2019. 

CCS was one of the first entities to kick off the December quarter earnings season and it offers a bellwether for the broader food and beverage sector. 

Investors are also looking forward to some solid earnings reports as they have largely looked past the pandemic for companies with better prospects in areas of food and beverage, financials, telecommunications, construction, pharmaceuticals, as some got a boost from the pandemic, while others did well since the end of 
the lockdowns. 

The CCS stock ended at Rs.726.25 on Friday, up Rs.16.25 or 2.29 percent, giving the company a market capitalisation of Rs.69 billion. 

The company’s manufacturing operations, which consist of Elephant House branded beverage and frozen confectionary, reported revenues of Rs.3.1 billion and an after-tax profit of Rs.226.4 million, little down from Rs.3.4 billion and Rs.256.5 million in the same quarter a year ago.

Meanwhile, the group’s retail business, which runs the country’s second largest privately owned supermarket chain, increased revenues to Rs.16 billon from Rs.14.6 billion, but the after-tax profit fell to Rs.289.2 million from Rs.314.5 million. 

John Keells Holdings PLC owns 70.66 percent of CCS.