May 31, 2024: Agriculture-rich diversified conglomerate CIC Holdings PLC (CSE: CIC) reported robust revenue growth amidst moderately stable macroeconomic conditions, reporting notable top- line growth during the year ended 31st March 2024. Group’s Crop Solutions, Agri Produce and Health and Personal Care sectors led growth, while the Crop Solutions segment remained the major contributor to total Group revenue in FY24.
CIC recorded a consolidated Group revenue of Rs.76.4 billion for the year ended 31st March 2024, an increase of 11.9% over last year. Profit after tax (PAT) for the period in review increased by 9.6% to Rs. 11 billion. The gross profit decreased by Rs.3.7 billion, down 15.4% YoY, compared to the previous year. Gross profit margin for the period stood at 27%, a contraction of 880 basis points against the corresponding period last year, largely attributed to margin pressure on increased competition and higher input costs.
During the fourth quarter of FY24, CIC Group’s consolidated revenue rose by 3.74% to Rs. 16.2 billion and profit before tax (PBT) by 7.47% to Rs. 1.3 billion. Additionally, the Group’s finance cost declined to Rs. 630 million during the fourth quarter from Rs. 790 million, reported during the same period in FY23, with reductions in overall borrowing rates attributed to ongoing Government’s fiscal reforms and greater macro stability in the economy.
The Group’s Crop Solutions business emerged as the largest contributor to CIC’s revenue, accounting for 40.8% of the total, while Livestock Solutions, Health and Personal Care, Industrial Solutions, Agri Produce sectors of the Group contributed 21.1%, 21.2%, 9.9% and 7.1% respectively of the total Group revenue. The Group operating profit (EBIT) closed at Rs. 10.7 billion, an /decrease of 36.6% YoY. Additionally, the Group’s finance cost for the period in review decreased to Rs. 3.3 billion from Rs. 4.8 billion in the previous year.
During the period in review, key Group businesses under the five industry sectors, which are Crop Solutions, Agri Produce, Livestock Solutions, Industrial Solutions and Health/Personal Care, performed resiliently. Crop solutions revenue grew from Rs.23.3 billion to Rs. 31.2 billion, agri produce revenue grew from Rs.4.3 billion to Rs. 5.4 billion, and health and personal care revenue grew from Rs. 13.2 billion to Rs. 16.2 billion. Livestock solutions revenue declined from Rs.18.7 billion to Rs. 16.1 billion, and industrial solutions revenue declined from Rs. 8.7 billion to Rs. 7.6 billion.
CIC Holdings Group CEO Aroshan Seresinhe commented on the results, “The Group had to face and overcome tough economic factors and adverse market conditions which were more persistent in the first half of the year. These headwinds impacted some core sector performances. However, through robust cost management initiatives, prudent working capital management and process reengineering efforts supported by integrating digital technologies, CIC has delivered a strong performance in FY23. Despite the difficulties, the Group has displayed resilience and agility in taking an optimistic outlook on fortifying operations to further strengthen overall performance.”