Unaudited Interim Condensed Consolidated Financial Statements
for the First Quarter Ended
BPPL Holdings April-June '22 Net Earnings up 188% YoY.
BPPL Holdings announced today its unaudited financial results for the three month period April to June 2022. Net earnings for the quarter were Rs.300 million or Rs. 0.98 per share, up by 188% compared to the corresponding period in the previous year where the net earnings were Rs.104 million or Rs.0.34 per share.
YoY revenue growth was 58% in Rupee terms to Rs1.6 billion.
The net earnings increase for the period was due to a combination of the increase in revenue and gross profit margins. Gross profit margins improved to 39% during the period from 29% in the same period the previous year due to product price increases in Jan'22, recommencement of local sourcing of both timber and PET bottles following the lifting of COVID related travel restrictions earlier this year and the effects of steep Sri Lankan Rupee depreciation in March '22.
Group distribution costs largely relating to freight, shipping and related costs, though a higher 8.3% of revenue during the period vs 7.6% during the corresponding period in the previous year, have now started to come down in line with falling global freight rates.
Other income continued to grow as was also seen in the Jan-Mar '22 period by 327% to Rs.11 million following the commissioning of several solar power generation plants earlier this year where solar capacity increased to 2.2MWs from 347KWs.
There were exchange gains of Rs.67 million during the quarter as the Sri Lankan Rupee continued to depreciate in the months of April and May.
Depreciation charges increased by 39% with the completion of Phase 2 of the Yarn expansion program during the Jan- Mar '22 quarter. Finance costs grew four fold following the Yarn phase 2 expansion, interest on term loans taken for the solar projects, higher working capital needs due to significant delays in shipment arrival (to Sri Lanka) and transit times and US Dollar interest rate increases.
I'm also pleased to say that our staff worked tirelessly to overcome a very challenging operating environment due to limited fuel supplies and electricity cuts during the reported period. Electricity supply for continuous operations was barely managed with the help of fuel supplies from private sector operators who had to be paid in hard currency.
We also provided fuel where possible to some key raw material suppliers for them to carry on their work. However, some secondary suppliers were affected by the fuel crisis.
We are making steady progress with obtaining the necessary regulatory approvals for the pending US Dollar 15 million, 10 year term loan from the United States Development Finance Corporation. Disbursement of funds are expected to commence later this year and will be obtained in three tranches over a four year period.
Founded in 1984, BPPL Holdings manufactures a range of high quality, durable brushware and cleaning products for both professional and household applications. Leveraging on its sustainable manufacturing and vertically integrated processes, coupled with commitment to consistent quality, on-time delivery, reasonable pricing and flexibility allows it to supply to major distributors and retailers of cleaning tools
The Group has in recent years diversified its business lines to include synthetic filament extrusion and polyester yarn production. These new lines cater to customers both in Sri Lanka and overseas and are expected to be major contributors to group financials over the medium term.
Managing Director / Chief Executive Officer
B P P L Holdings PLC | Interim Condensed Financial Statements - Three months ended 30 June 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Right- of - use assets
Cash in hand and at bank
Note : The above figures are not audited.
I certify that the financial statements comply with the requirements of the Companies Act No.7 of 2007.
The accounting policies and notes form an integral part of the financial statements.
The Board of Directors is responsible for the preparation and presentation of these financial statements.These financial figures were approved by the Board on 21st July 2022.
B P P L Holdings PLC | Interim Condensed Financial Statements - Three months ended 30 June 2022
Other operating income/(Loss) Selling and distribution expenses Administrative expenses Results from operating activities
Profit for the period Earnings/(Loss) per Ordinary share
Note : Figures in brackets indicate deductions. The above figures are not audited.
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B P P L Holdings plc published this content on 25 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 July 2022 12:53:01 UTC.