BPPL Holdings net profit has increased by 42% to Rs 436 mn in the financial year April 2016 to March 2017.
Consolidated revenue for the period was Rs2.4 billion, up 16% over the corresponding period in the previous year. The North American region accounted for 77% of the reported revenue. The region saw a 21% increase in revenue over the previous financial year. High growth was also seen in New Zealand, Indonesia and Sri Lanka although from smaller bases.
In the United States, robust revenue growth was seen in the food services, janitorial and oil and gas sectors. Revenue slowed in Australia and Britain due to client inventory adjustments and new product launches in the previous financial year causing increased orders in that year. Sales to Britain were also affected by Sterling depreciation vs the Sri Lankan Rupee during the period.
Overall revenues were also strong as the company pursued its dual objectives of penetrating the household market segment both through direct sales to retailers and own branded goods sales in Sri Lanka and Indonesia.
Direct sales accounted for 10% of total sales for the period, up 20% year-on-year. Own branded goods also grew by 59%, again over the corresponding period in the previous year. Gross profit was up by a faster 26% year-on-year to Rs 963 million due to margin expansion amid revenue growth. Gross profit margins, which improved from 37% to 40% during the twelve month period ended March 2017, continued to benefit from higher productivity, lower freight rates, lower costs as a result of improved raw material sourcing and Sri Lankan Rupee depreciation against the US Dollar. Improved productivity and stringent cost controls also led to a 41% increase in operating profit (EBIT) to Rs 512 million compared to the same period in the previous year.
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