Melstacorp : Interim Financials for the quarter ended 30th September 2022

MELSTACORP PLC

INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED

30th SEPTEMBER 2022

MELSTACORP PLC

STATEMENTS OF COMPREHENSIVE INCOME

		GROUP				COMPANY
		Unaudited	Variance		Unaudited	Variance
Rs. '000s	Unaudited	Unaudited
For the six months ended 30th September,	2022	2021	%		2022	2021	%
	Rs. '000	Rs. '000			Rs. '000	Rs. '000
Revenue	118,469,000	71,564,855	65.54		129,982	123,199	5.51
Excise duty	(36,118,048)	(29,185,558)	23.75		-	-	-
Cost of sales and net benefits paid	(46,706,195)	(26,636,465)	75.35		(1,171)	(1,055)	11.01
Gross Profit	35,644,757	15,742,833	126.42		128,811	122,144	5.46
Other Operating Income	729,834	764,283	(4.51)		4,217,403	3,996,759	5.52
Selling and distribution expenses	(2,396,925)	(976,234)	145.53		-	-	-
Administrative Expenses	(12,695,159)	(7,657,962)	65.78		(157,783)	(96,281)	63.88
Other Operating Expenses	(297,148)	(102,504)	189.89		-	(1,825,530)	-
Profit from Operations	20,985,359	7,770,417	170.07		4,188,431	2,197,093	90.64
Finance Income	10,192,769	1,514,296	573.10		1,255,981	476,640	163.51
Finance Cost	(6,923,887)	(2,566,425)	169.79		(1,068,839)	(262,333)	307.44
Net Finance Income/(cost)	3,268,882	(1,052,129)			187,142	214,307	(12.68)
Share of Profit of Equity-Accounted Investees (Net of Tax)	759,178	290,522	161.31		-	-	-
Profit before Tax for the period	25,013,418	7,008,810	256.89		4,375,573	2,411,400	81.45
Income Tax	(8,291,073)	(3,818,708)	117.12		(596,519)	(270,430)	120.58
Profit for the period	16,722,345	3,190,102	424.19		3,779,053	2,140,970	76.51
Other comprehensive income
Items that will never be reclassified to profit or loss
Equity investments at FVOCI - net change in fair value	(1,570,809)	735,062	(313.70)		(1,210,876)	504,175	(340.17)
	(1,570,809)	735,062	-		(1,210,876)	504,175	-
Items that are or may be reclassified to profit or loss
Exchange Difference on translation of foreign operations	6,161,762	52,478	11,641.61		-	-	-
Net movement on Cashflow Hedges	(675,727)	53,334	(1,366.97)		-	-	-
Share of other comprehensive income of equity accounted	429,179	(34,774)	1,334.20		-	-	-
investees
	5,915,214	71,038	8,226.83		-	-	-
Total other comprehensive income for the period	4,344,405	806,100	(438.94)		(1,210,876)	504,175	340.17
Total comprehensive income for the period
21,066,749	3,996,202	(427.17)		2,568,177	2,645,145	(2.91)
Profit Attributable to:
Equity Holders of the Parent	12,357,402	3,488,472	254.24		3,779,053	2,140,970	76.51
Non Controlling Interest	4,364,943	(298,370)	1,562.93		-	-	-
Profit for the period	16,722,345	3,190,102			3,779,053	2,140,970
Total Comprehensive Income Attributable to:
Equity Holders of the Parent	13,034,792	4,222,097	208.73		2,568,177	2,645,145	(2.91)
Non Controlling Interest	8,031,957	(225,895)	3,655.62		-	-	-
Total comprehensive income for the period	21,066,749	3,996,202			2,568,177	2,645,145
Earnings per Share (Rs.)
Basic Earnings per Share	10.60	2.99	254.24		3.24	1.84	76.51

MELSTACORP PLC

STATEMENTS OF COMPREHENSIVE INCOME

		GROUP				COMPANY
Rs. '000s	Unaudited	Unaudited	Variance		Unaudited	Unaudited	Variance
For the quarter ended 30th September,	2022	2021	%	2022	2021	%
	Rs. '000	Rs. '000			Rs. '000	Rs. '000
Revenue	59,288,569	35,960,136	64.87	64,864	58,675	10.55
Excise duty	(15,415,895)	(13,469,338)	14.45	-	-	-
Cost of sales and net benefits paid	(24,596,057)	(13,181,443)	86.60		(854)	(471)	81.45
Gross Profit	19,276,617	9,309,354	107.07	64,010	58,204	9.97
Other Operating Income	300,182	282,977	6.08	2,863,436	750,361	281.61
Selling and distribution expenses	(1,273,291)	(551,413)	130.91	-	-	-
Administrative Expenses	(6,497,832)	(3,777,998)	71.99	(93,434)	(50,605)	84.63
Other Operating Expenses	(192,609)	(50,185)	283.80	-	(1,825,530)	(100.00)
Profit from Operations	11,613,066	5,212,734	122.78	2,834,012	(1,067,570)	(365.46)
Finance Income	2,300,656	755,858	204.38	734,989	224,431	227.49
Finance Cost	(3,542,009)	(1,253,408)	182.59		(595,765)	(127,593)	366.92
Net Finance Income/(cost)	(1,241,353)	(497,550)			139,224	96,838	43.77
Share of Profit of Equity-Accounted Investees (Net of Tax)	437,081	187,642	132.93	-	-	-
Profit before Tax for the Quarter	10,808,794	4,902,826	120.46	2,973,236	(970,732)	(406.29)
Income Tax	(4,518,050)	(2,017,679)	123.92		(458,410)	165,543	(376.91)
Profit for the Quarter	6,290,744	2,885,148	118.04	2,514,826	(805,189)	(412.33)
Other comprehensive income
Items that will never be reclassified to profit or loss
Equity investments at FVOCI - net change in fair value	2,801,319	2,352,857	19.06	2,771,431	1,971,266	40.59
Share of other comprehensive income of equity-accounted	-	(5,255)	(100.00)	-	-	-
investees (net of tax)
	2,801,319	2,347,602	-	2,771,431	1,971,266	-
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

(48,665)	72,467	167.15	-	-	-
697,157	153,141	355.24	-	-	-
(104,712)	(38,449)	(172.34)	-	-	-

	543,780	187,159		-	-
Total other comprehensive income for the quarter
3,345,099	2,534,761	31.97	2,771,431	1,971,266	40.59
Total comprehensive income for the quarter
9,635,843	5,419,910	77.79	5,286,257	1,166,076	353.34
Profit Attributable to:
Equity Holders of the Parent	5,466,786	2,668,508	104.86	2,514,826	(805,189)	412.33
Non Controlling Interest	823,958	216,640	280.34	-	-	-
Profit for the Quarter	6,290,744	2,885,148		2,514,826	(805,189)	(412.33)
Total Comprehensive Income Attributable to:
Equity Holders of the Parent	8,344,669	5,036,865	65.67	5,286,257	1,166,076	353.34
Non Controlling Interest	1,291,174	383,044	237.08	-	-	-
Total Comprehensive Income for the Quarter	9,635,843	5,419,910		5,286,257	1,166,076
Earnings per Share (Rs.)	4.69	2.29		2.16	(0.69)

MELSTACORP PLC

STATEMENTS OF FINANCIAL POSITION

	GROUP		COMPANY
	Unaudited	Audited	Unaudited	Audited
As at,	30-Sep-2022	31-Mar-2022	30-Sep-2022	31-Mar-2022
	Rs. '000s	Rs. '000s	Rs. '000s	Rs. '000s
Non-Current Assets
Property, plant and equipment	140,259,661	127,785,816		12,264	13,113
Intangible assets	6,409,635	5,978,579		1,743	586
Investment property	7,455,895	7,473,414		6,586,162	6,586,161
Biological assets	9,608,276	9,232,870		-	-
Right-of-use assets	23,698,335	20,522,615		25,564	29,217
Investments in subsidiaries	-	-		61,569,144	60,950,002
Investment in equity accounted investees	9,668,322	9,233,260		1,352,000	1,352,000
Deferred tax asset	1,942,342	3,572,382		3,056	3,057
Other non current financial investments	28,777,162	30,107,057		25,135,009	26,181,711
	227,819,628	213,905,993		94,684,940	95,115,847
Currents Assets
Inventories	14,309,010	9,708,008		1,045	1,048
Produce on bearer biological assets	15,366	5,568		-	-
Trade and other receivables	38,986,781	32,871,963		36,739	3,253,557
Amounts due from related companies	437,436	217,959		2,715,855	2,313,973
Other current financial investments	31,002,490	28,000,520		7,578,633	6,787,575
Other current assets	567,982	583,502		-	-
Cash and cash equivalents	26,369,823	24,902,636		15,032	212,665
	111,688,888	96,290,156		10,347,304	12,568,818
Assets held for Sale	164,125	1,751,094		-	-
Total assets	339,672,641	311,947,243		105,032,245	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	39,763,095	38,785,120		10,912,607	12,123,483
Retained earnings/(Losses)	(12,935,604)	(21,472,548)		13,156,504	9,575,828
Equity attributable to owners of the Company	96,827,491	87,312,572		94,069,111	91,699,311
Non controlling interest	54,049,352	49,020,474		-	-
Total equity	150,876,843	136,333,046		94,069,111	91,699,311
Non-Current Liabilities
Interest bearing loans and borrowings	57,790,321	51,767,396		-	-
Lease liabilities	19,408,975	17,031,476		20,303	23,859
Employee benefits	4,011,808	3,912,802		13,487	11,756
Deferred tax liabilities	10,253,906	11,577,145		780,810	780,810
Other liabilities	979,574	740,368		-	-
	92,444,582	85,029,187		814,601	816,425
Current Liabilities
Trade and other payables	43,892,331	50,324,333		80,326	3,223,020
Other liabilities	30,629	5,150		-	-
Amount due to related companies	2,850,753	1,966,519		433,661	391,688
Income tax payable	6,111,396	3,424,693		526,811	826,742
Interest bearing loans and borrowings	9,218,486	9,200,270		-	-
Lease liabilities	2,584,065	2,240,653		6,782	6,336
Bank overdrafts and other short term borrowings	31,663,557	23,423,392		9,100,953	10,721,143
	96,351,216	90,585,010		10,148,533	15,168,929
Total liabilities	188,795,798	175,614,197		10,963,134	15,985,354
Total Equity and Liabilities	339,672,641	311,947,243		105,032,245	107,684,665
Net Assets per Share (Rs.)	83.09	74.92		80.72	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/-
D.H.S. Jayawardena	L.U.D.Fernando
Chairman	Managing Director (Actg)

14th November 2022 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	-	-	-	-	-	-	-	-	-	-	3,488,472	3,488,472	(298,370)	3,190,102
Other Comprehensive Income
Equity investments at FVOCI - net change in fair value	-	-	-	-	-	-	-	719,258	-	-	-	719,258	15,804	735,062
Net movement on Cashflow Hedges	-	-	-	-	-	-	-	-	-	11,996	-	11,996	41,338	53,334
Income Tax on Other Comprehensive Income												-		-
Exchange difference on translation of foreign operations	-	-	-	-	-	20,544	-	-	-	-	-	20,544	31,934	52,478
Share of Other Comprehensive Income of Equity-Accounted
Investees (Net of Tax)	-	(673)	-	-	-	(17,501)	-	-	-	-	-	(18,174)	(16,600)	(34,774)
Income tax on other comprehensive income												-		-
Total Other Comprehensive Income for the period	-	(673)	-	-	-	3,044	-	719,258	-	11,996	-	733,625	72,475	806,100
Total Comprehensive Income for the period
-	(673)	-	-	-	3,044	-	719,258	-	11,996	3,488,472	4,222,097	(225,895)	3,996,202
Transactions with owners directly recorded in the Equity
Dividends paid to Non Controlling Interest	-	-	-	-	-	-	-	-	-	-	-	-	(985,138)	(985,138)
Share of Net Assets of Equity-Accounted Investees (Net of Tax)	-	-	-	-	-	-	-	-	-	-	10,990	10,990	18,327	29,317
Acquisition of Non Controlling Interest Chnages in % Holding of
Subsidiaries												-		-
Dividends Paid During the Period	-	-	-	-	-	-	-	-	-	-	(3,204,845)	(3,204,845)	-	(3,204,845)
Transferred From/To Retained Earnings	-	-	-	-	-	-	55,103	-	-	-	(55,103)	-	-	-
Total Contributions by and Distributions to Owners	-	-	-	-	-	-	55,103	-	-	-	(3,248,958)	(3,193,855)	(966,811)	(4,160,666)
Balance as at 30th September 2021
89,100,000	9,615,280	12,137	20,491	3,005,189	2,496,129	1,868,148	17,243	-	(232,784)	(21,221,816)	84,680,017	38,828,070	123,508,087