Melstacorp : Interim Financials for the Nine Months Ended 31st December 2022

MELSTACORP PLC

INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED

31st DECEMBER 2022

MELSTACORP PLC

STATEMENTS OF COMPREHENSIVE INCOME

		GROUP				COMPANY
		Unaudited	Variance		Unaudited	Variance
Rs. '000s	Unaudited	Unaudited
For the nine months ended 31st December,	2022	2021	%		2022	2021	%
	Rs. '000	Rs. '000			Rs. '000	Rs. '000
Revenue	179,521,095	122,352,549	46.72		194,599	182,974	6.35
Excise duty	(52,026,196)	(51,929,172)	0.19		-	-	-
Cost of sales and net benefits paid	(69,185,790)	(42,972,355)	61.00		(5,309)	(5,188)	2.32
Gross Profit	58,309,109	27,451,022	112.41		189,290	177,785	6.47
Other Operating Income	1,142,069	1,196,031	(4.51)		6,897,678	7,903,443	(12.73)
Selling and distribution expenses	(4,293,891)	(1,726,120)	148.76		-	-	-
Administrative Expenses	(19,891,822)	(12,238,695)	62.53		(219,696)	(171,935)	27.78
Other Operating Expenses	(455,784)	(127,410)	257.73		-	(1,825,530)	(100.00)
Profit from Operations	34,809,681	14,554,828	139.16		6,867,272	6,083,763	12.88
Finance Income	11,603,150	2,269,919	411.17		2,111,326	858,260	146.00
Finance Cost	(11,226,880)	(3,887,379)	188.80		(1,790,855)	(448,027)	299.72
Net Finance Income/(cost)	376,270	(1,617,460)			320,472	410,233	(21.88)
Share of Profit of Equity-Accounted Investees (Net of Tax)	935,648	452,075	106.97		-	-	-
Profit before Tax for the period	36,121,600	13,389,443	169.78		7,187,744	6,493,996	10.68
Income Tax	(13,998,592)	(6,301,655)	122.14		(1,041,213)	(799,246)	30.27
Profit for the period	22,123,008	7,087,788	212.13		6,146,531	5,694,750	7.93
Other comprehensive income
Items that will never be reclassified to profit or loss
Equity investments at FVOCI - net change in fair value	(2,729,897)	1,541,874	(277.05)		(2,261,738)	1,395,138	(262.12)
	(2,729,897)	1,541,874	-		(2,261,738)	1,395,138	-
Items that are or may be reclassified to profit or loss
Exchange Difference on translation of foreign operations	6,250,750	8,828	70,705.96		-	-	-
Net movement on Cashflow Hedges	(1,521,655)	206,650	(836.34)		-	-	-
Share of other comprehensive income of equity accounted	573,703	(47,339)	1,311.90		-	-	-
investees
	5,302,798	168,139	3,053.82		-	-	-
Total other comprehensive income for the period	2,572,901	1,710,013	50.46		(2,261,738)	1,395,138	(262.12)
Total comprehensive income for the period
24,695,908	8,797,801	180.71		3,884,792	7,089,888	45.21
Profit Attributable to:
Equity Holders of the Parent	17,354,697	5,706,720	204.11		6,146,531	5,694,750	7.93
Non Controlling Interest	4,768,311	1,381,068	(245.26)		-	-	-
Profit for the period	22,123,008	7,087,788			6,146,531	5,694,750
Total Comprehensive Income Attributable to:
Equity Holders of the Parent	16,854,251	7,263,393	132.04		3,884,792	7,089,888	(45.21)
Non Controlling Interest	7,841,657	1,534,408	(411.05)		-	-	-
Total comprehensive income for the period	24,695,908	8,797,801			3,884,792	7,089,888
Earnings per Share (Rs.)
Basic Earnings per Share	14.89	4.90	204.11		5.27	4.89	7.93

MELSTACORP PLC

STATEMENTS OF COMPREHENSIVE INCOME

		GROUP				COMPANY
Rs. '000s	Unaudited	Unaudited	Variance		Unaudited	Unaudited	Variance
For the quarter ended 31st December,	2022	2021	%	2022	2021	%
	Rs. '000	Rs. '000			Rs. '000	Rs. '000
Revenue	61,052,096	50,787,694	20.21	64,617	59,775	8.10
Excise duty	(15,908,149)	(22,743,615)	(30.05)	-	-	-
Cost of sales and net benefits paid	(22,479,595)	(16,335,890)	37.61		(4,138)	(4,134)	0.10
Gross Profit	22,664,352	11,708,189	93.58	60,479	55,641	8.70
Other Operating Income	412,235	431,748	(4.52)	2,680,275	3,906,684	(31.39)
Selling and distribution expenses	(1,896,966)	(749,887)	152.97	-	-	-
Administrative Expenses	(7,196,663)	(4,580,734)	57.11	(61,912)	(75,655)	(18.16)
Other Operating Expenses	(158,636)	(24,906)	536.95	-	-	-
Profit from Operations	13,824,323	6,784,411	103.77	2,678,842	3,886,670	(31.08)
Finance Income	1,410,381	755,623	86.65	855,345	381,620	124.14
Finance Cost	(4,302,993)	(1,320,953)	225.75		(722,015)	(185,694)	288.82
Net Finance Income/(cost)	(2,892,612)	(565,331)			133,330	195,926	(31.95)
Share of Profit of Equity-Accounted Investees (Net of Tax)	176,471	161,552	9.23	-	-	-
Profit before Tax for the Quarter	11,108,181	6,380,632	74.09	2,812,171	4,082,596	(31.12)
Income Tax	(5,707,519)	(2,482,947)	129.87		(444,694)	(528,815)	(15.91)
Profit for the Quarter	5,400,663	3,897,686	38.56	2,367,478	3,553,781	(33.38)
Other comprehensive income
Items that will never be reclassified to profit or loss
Equity investments at FVOCI - net change in fair value	(1,159,088)	806,812	(243.66)	(1,050,862)	890,963	(217.95)
Share of other comprehensive income of equity-accounted	-	-	#DIV/0!	-	-	-
investees (net of tax)
	(1,159,088)	806,812	-	(1,050,862)	890,963	-
Items that are or may be reclassified to profit or loss

Exchange Difference on translation of foreign operations Net movement on Cashflow Hedges

Share of other comprehensive income of equity accounted investees

88,988	(43,650)	303.87	-	-	-
(845,928)	153,316	(651.75)	-	-	-
144,524	(12,565)	1,250.21	-	-	-

	(612,416)	97,101		-	-
Total other comprehensive income for the quarter
(1,771,504)	903,913	(295.98)	(1,050,862)	890,963	(217.95)
Total comprehensive income for the quarter
3,629,159	4,801,600	(24.42)	1,316,615	4,444,743	(70.38)
Profit Attributable to:
Equity Holders of the Parent	4,997,295	2,218,248	125.28	2,367,478	3,553,781	33.38
Non Controlling Interest	403,368	1,679,438	(75.98)	-	-	-
Profit for the Quarter	5,400,663	3,897,686		2,367,478	3,553,781	(33.38)
Total Comprehensive Income Attributable to:
Equity Holders of the Parent	3,819,459	3,041,296	25.59	1,316,615	4,444,743	(70.38)
Non Controlling Interest	(190,300)	1,760,304	(110.81)	-	-	-
Total Comprehensive Income for the Quarter	3,629,159	4,801,600		1,316,615	4,444,743
Earnings per Share (Rs.)	4.29	1.90		2.03	3.05

MELSTACORP PLC

STATEMENTS OF FINANCIAL POSITION

	GROUP		COMPANY
	Unaudited	Audited	Unaudited	Audited
As at,	31-Dec-2022	31-Mar-2022	31-Dec-2022	31-Mar-2022
	Rs. '000s	Rs. '000s	Rs. '000s	Rs. '000s
Non-Current Assets
Property, plant and equipment	139,370,687	127,785,816		11,380	13,113
Intangible assets	6,357,559	5,978,579		1,652	586
Investment property	7,460,128	7,473,414		6,587,405	6,586,161
Biological assets	9,603,697	9,232,870		-	-
Right-of-use assets	23,431,993	20,522,615		23,738	29,217
Investments in subsidiaries	-	-		61,649,144	60,950,002
Investment in equity accounted investees	10,211,353	9,233,260		1,452,000	1,352,000
Deferred tax asset	2,337,637	3,572,382		3,056	3,057
Other non current financial investments	27,484,681	30,107,057		24,085,810	26,181,711
	226,257,735	213,905,993		93,814,184	95,115,847
Currents Assets
Inventories	17,278,173	9,708,008		1,045	1,048
Produce on bearer biological assets	25,396	5,568		-	-
Trade and other receivables	40,250,476	32,871,963		2,045,573	3,253,557
Amounts due from related companies	453,183	217,959		3,050,531	2,313,973
Other current financial investments	33,889,946	28,000,520		7,929,234	6,787,575
Other current assets	566,707	583,502		-	-
Cash and cash equivalents	24,424,269	24,902,636		13,370	212,665
	116,888,150	96,290,156		13,039,753	12,568,818
Assets held for Sale	164,125	1,751,094		-	-
Total assets	343,310,009	311,947,243		106,853,937	107,684,665
EQUITY AND LIABILITIES
Share capital and reserves
Stated Capital	70,000,000	70,000,000		70,000,000	70,000,000
Reserves	38,572,814	38,785,120		9,861,745	12,123,483
Retained earnings/(Losses)	(10,697,130)	(21,472,548)		12,785,299	9,575,828
Equity attributable to owners of the Company	97,875,684	87,312,572		92,647,043	91,699,311
Non controlling interest	53,218,747	49,020,474		-	-
Total equity	151,094,431	136,333,046		92,647,043	91,699,311
Non-Current Liabilities
Interest bearing loans and borrowings	55,758,788	51,767,396		-	-
Lease liabilities	19,026,620	17,031,476		18,705	23,859
Employee benefits	3,979,318	3,912,802		14,352	11,756
Deferred tax liabilities	10,980,657	11,577,145		780,810	780,810
Other liabilities	834,285	740,368		-	-
	90,579,669	85,029,187		813,868	816,425
Current Liabilities
Trade and other payables	43,965,034	50,324,333		79,761	3,223,020
Other liabilities	6,032	5,150		-	-
Amount due to related companies	3,048,593	1,966,519		435,760	391,688
Income tax payable	7,561,575	3,424,693		773,113	826,742
Interest bearing loans and borrowings	10,305,804	9,200,270		-	-
Lease liabilities	2,600,627	2,240,653		6,782	6,336
Bank overdrafts and other short term borrowings	34,148,244	23,423,392		12,097,610	10,721,143
	101,635,909	90,585,010		13,393,026	15,168,929
Total liabilities	192,215,578	175,614,197		14,206,894	15,985,354
Total Equity and Liabilities	343,310,009	311,947,243		106,853,937	107,684,665
Net Assets per Share (Rs.)	83.98	74.92		79.50	78.69
The above unaudited figures are provisional and subject to audit.

I certify that the Financial Statements have been prepared & presented in compliance with the requirements of Companies Act No. 07 of 2007.

sgd/- D.M.Welikandage Head of Finance

The Directors are responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the board.

sgd/-	sgd/-
C.R.Jansz	L.U.D.Fernando
Director	Director

13th February 2023 in Colombo.

MELSTACORP PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

GROUP
					Attributable to equity holders of parent
								Fair Value			Retained		Non
	Stated	Revaluation	Capital	Reserve	General	Exchange	Timber	Investment	Cash Flow	Earnings/		controlling	Total equity
	reserve	Total
						fluctuation			Hedge Reserve	(Losses)	interest
	capital	reserve	reserve	fund	reserve	reserve	reserve	reserve	fund
	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000	Rs.'000
Balance as at 1st April 2021	89,100,000	9,615,953	12,137	20,491	3,005,189	2,493,085	1,813,045	(702,015)	-	(244,780)	(21,461,330)	83,651,775	40,020,776	123,672,551
Total Comprehensive Income for the Period
Profit for the period	-	-	-	-	-	-	-	-	-	-	5,706,720	5,706,720	1,381,068	7,087,788
Other Comprehensive Income
Equity investments at FVOCI - net change in fair value	-	-	-	-	-	-	-	1,531,049	-	-	-	1,531,049	10,823	1,541,872
Net movement on Cashflow Hedges	-	-	-	-	-	-	-	-	-	46,479	-	46,479	160,171	206,650
Income Tax on Other Comprehensive Income												-		-
Exchange difference on translation of foreign operations	-	-	-	-	-	3,641	-	-	-	-	-	3,641	5,187	8,828
Share of Other Comprehensive Income of Equity-Accounted
Investees (Net of Tax)	-	(673)	-	-	-	(23,823)	-	-	-	-	-	(24,496)	(22,841)	(47,337)
Income tax on other comprehensive income												-		-
Total Other Comprehensive Income for the period	-	(673)	-	-	-	(20,182)	-	1,531,049	-	46,479	-	1,556,673	153,340	1,710,013
Total Comprehensive Income for the period
-	(673)	-	-	-	(20,182)	-	1,531,049	-	46,479	5,706,720	7,263,393	1,534,408	8,797,801

Transactions with owners directly recorded in the Equity Dividends paid to Non Controlling Interest

Reduction of stated capital (Note-9 (ii))

Repurchase of Non voting shares (Note-9 (i))

Share of Net Assets of Equity-Accounted Investees (Net of Tax) Acquisition of Non Controlling Interest Chnages in % Holding of Subsidiaries

Dividends Paid During the Period Transferred From/To Retained Earnings

Total Contributions by and Distributions to Owners

Balance as at 31st December 2021

-	-	-	-	-	-	-	-	-	-	-	-	(1,563,487)	(1,563,487)
(19,100,000)	-	19,100,000	-	-	-	-	-	-	-	-	-	-
-	-	-	-	-	-	-	-	-	-	(64)	(64)	-
-	-	-	-	-	-	-	-	-	-	10,990	10,990	18,327	29,317
-	-	-	-	-	-	-	-	-	-	1,492	1,492	(1,492)	-
-	-	-	-	-	-	-	-	-	-	(6,351,417)	(6,351,417)	-	(6,351,417)
-	-	-	-	-	-	84,761	-	-	-	(84,761)	-	-	-
(19,100,000)	-	19,100,000	-	-	-	84,761	-	-	-	(6,423,760)	(6,338,999)	(1,546,652)	(7,885,587)
70,000,000	9,615,280	19,112,137	20,491	3,005,189	2,472,903	1,897,806	829,034	-	(198,301)	(22,178,370)	84,576,169	40,008,532	124,584,765