Quarterly Financial Statements as at 30th September 2024

Name of Company

Chemanex PLC

Legal Status

A Public Quoted Company with Limited Liability

Under the provisions of Companies Act No 7 of 2007

Registered Office

52, Galle Face Court 2,

Colombo-3.

Date of Incorporation

28 August 1974

Company Registration Number

PQ 64

Directors

P R Saldin - Chairman

R P Bandaranayake (appointed w.e.f.25 th September 2024 )

E M M Boyagoda

S A B Ekanayake

T K D A P Samarasinghe (appointed w.e.f.25 th September 2024 )

P A Seresinhe

Company Secretary

S A B P W M R R W T Wegodapola

Auditors

Ernst & Young

Chartered Accountants

Rotunda Towers, No.109, Galle Road,

P.O.Box 101, Colombo 03.

Legal Advisers

Nithya Partners

Attorneys-at - Law

97A, Galle Road, Colombo 3.

Heritage Partners

Attorneys-at - Law

04, Malasekara Pedesa, Colombo 07,

Subsidiary Companies

Chemanex Exports (Pvt) Limited (Non operating)

Chemcel (Pvt) Limited (Non operating)

Bankers

Commercial Bank of Ceylon PLC

Standard Chartered Bank

Hatton National Bank PLC

National Development Bank PLC

Nations Trust Bank PLC

Quarter ended 30 September

Six months ended 30 September

2024

2023

Variance

2024

2023

Variance %

%

(In Rs. '000)

Note

Revenue

1

206,272

183,812

12

379,704

347,310

9

Cost of sales

(145,717)

(136,523)

7

(269,783)

(254,759)

6

Gross profit

60,555

47,289

28

109,921

92,551

19

Other income

2

4,482

6,917

(35)

30,000

25,110

19

Finance cost

(5,684)

(3,993)

42

(10,317)

(5,076)

103

Finance income

686

1,683

(59)

1,302

6,706

(81)

Net finance income/(expense)

3

(4,998)

(2,310)

116

(9,015)

1,630

653

Administrative expenses

(13,251)

(13,823)

(4)

(28,260)

(26,996)

5

Distribution expenses

(25,484)

(33,050)

(23)

(32,338)

(62,173)

(48)

Impairment reversal/(imapirment) on trade receivables

4,503

(1,348)

(434)

5,918

(99)

6,078

Profit before tax

25,807

3,675

602

76,226

30,023

154

Income tax expense

(9,047)

(5,075)

(78)

(16,921)

(17,178)

(1)

Profit for the period

16,760

(1,400)

(1,297)

59,305

12,845

362

Other comprehensive income

Items that will not be re-classified to profit or loss

Profit from sale of rights

12,155

-

100

12,155

-

100

Net gain/(loss) from fair value change of financial assets

(367,747)

650,430

(157)

(188,445)

802,800

(123)

Total other comprehensive income

(355,592)

650,430

(155)

(176,290)

802,800

(122)

Total comprehensive income for the period

(338,832)

649,030

(152)

(116,985)

815,645

(114)

Profit attributable to:

Equity holders of the Company

16,760

(1,400)

(1,297)

59,305

12,845

362

16,760

(1,400)

(1,297)

59,305

12,845

362

Other comprehensive income attributable to:

Equity holders of the Company

(355,592)

650,430

(155)

(176,290)

802,800

(122)

(355,592)

650,430

(155)

(176,290)

802,800

(122)

Earnings per share

Basic/Diluted earnings per share (Rs.)

1.07

(0.09)

(1,297)

3.78

0.82

362

(In Rs. '000)

Note

Revenue

1

206,272

183,812

12

379,704

347,310

9

Cost of sales

(145,717)

(136,523)

7

(269,783)

(254,759)

6

Gross profit

60,555

47,289

28

109,921

92,551

19

Other income

2

4,482

6,917

(35)

30,000

25,110

19

Finance cost

(5,684)

(3,993)

42

(10,317)

(5,076)

103

Finance income

686

1,227

(44)

1,302

6,250

(79)

Net finance income/(expense)

3

(4,998)

(2,310)

116

(9,015)

1,630

653

Administrative expenses

(13,251)

(13,823)

(4)

(28,260)

(26,996)

5

Distribution expenses

(25,484)

(33,050)

(23)

(32,338)

(62,173)

(48)

Impairment reversal/(imapirment) on trade receivables

4,503

(1,348)

(434)

5,918

(99)

6,078

Profit before tax

25,807

3,675

602

76,226

30,023

154

Income tax expenses

(9,047)

(5,075)

78

(16,921)

(17,178)

(1)

Profit after tax from continuing operations

16,760

(1,400)

(1,297)

59,305

12,845

362

Profit from discontinued operations, net of tax

179

3,694

(95)

1,706

1,902

(10)

Profit for the period

16,939

2,294

638

61,011

14,747

314

Other comprehensive income

Items that will not be re-classified to profit or loss

Profit from sale of rights

12,155

-

100

12,155

-

100

Net gain from fair value change of financial assets

(367,653)

651,512

(156)

(187,574)

804,193

(123)

Other comprehensive income for the period, net of tax

(355,498)

651,512

(155)

(175,419)

804,193

(122)

Total comprehensive income for the period

(338,559)

653,806

(152)

(114,408)

818,940

(114)

Profit attributable to :

Equity holders of the Company

16,939

2,294

638

61,011

14,747

314

Non-controlling interest

-

-

100

-

-

16,939

2,294

638

61,011

14,747

314

Other comprehensive income attributable to :

Equity holders of the Company

(355,498)

651,512

(155)

(175,419)

804,193

(122)

Non-controlling interest

-

-

-

-

(355,498)

651,512

(155)

(175,419)

804,193

(122)

Basic/Diluted earnings per share from continuing operations (Rs.)

1.07

(0.09)

(1,297)

3.78

0.82

362

Basic/Diluted earnings per share

(Rs.)

1.08

0.15

638

3.88

0.94

314

CHEMANEX PLC

STATEMENT OF FINANCIAL POSITION

Company

Group

30

30

31 March

30

30

31 March

September

September

September

September

2024

2024

As at

Note

2024

2023

2024

2023

(In Rs. '000)

Non-Current Assets

Property, plant & equipment

15,298

24,141

19,999

15,298

24,141

19,999

Intangible assets

591

730

660

591

730

660

Equity investment at fair value through OCI

298,844

231,719

298,844

298,844

231,719

298,844

Deferred tax assets

-

14,217

-

-

14,217

-

314,733

270,807

319,503

314,733

270,807

319,503

Current Assets

Inventories

166,859

125,453

140,046

166,859

125,453

140,046

Trade and other receivables

247,355

173,191

198,098

247,355

173,191

198,098

Equity investment at fair value through OCI

2,998,134

3,043,667

3,170,694

2,998,134

3,043,667

3,170,694

Deposits with banks

23,829

7,828

7,466

23,829

7,828

7,466

Cash & cash equivalents

5

24,259

20,188

100

24,259

20,188

100

3,460,436

3,370,327

3,516,404

3,460,436

3,370,327

3,516,404

Assets classified as held for distribution

47,000

47,000

47,000

62,605

61,683

59,980

3,507,436

3,417,327

3,563,404

3,523,041

3,432,010

3,576,384

Total Assets

3,822,169

3,688,134

3,882,907

3,837,774

3,702,817

3,895,887

EQUITY & LIABILITIES

Stated capital

126,250

126,250

126,250

126,250

126,250

126,250

Capital reserves

-

-

-

3,000

3,000

3,000

Revenue reserves

3,260,739

3,237,627

3,416,992

3,345,495

3,321,525

3,499,171

Equity attributable to equity holders of the parent

3,386,989

3,363,877

3,543,242

3,474,745

3,450,775

3,628,421

Non- controlling interests

-

-

(2,832)

(2,801)

(2,832)

Total Equity

3,386,989

3,363,877

3,543,242

3,471,913

3,447,974

3,625,589

Non-Current Liabilities

Loans and borrowings

-

10,507

-

-

10,507

-

Retirement benefit obligations

6,301

3,343

5,815

6,301

3,343

5,815

Deferred tax liabilities

8,114

-

8,114

8,114

-

8,114

14,415

13,850

13,929

14,415

13,850

13,929

Current Liabilities

Trade payable

1,670

9,665

27,336

1,670

9,665

27,336

Income tax payable

6,000

467

7,803

6,000

467

7,803

Accruals & other payable

100,682

113,434

117,726

30,378

43,003

47,418

Loans and borrowings

312,413

186,841

172,871

312,413

186,841

172,871

420,765

310,407

325,736

350,461

239,976

255,428

Liabilities classified as held for distribution

-

-

-

985

1,017

941

Total liabilities

435,180

324,257

339,665

365,861

254,843

270,298

Total Equity & Liabilities

3,822,169

3,688,134

3,882,907

3,837,774

3,702,817

3,895,887

Net Assets per share (Rs.)

215.64

214.16

225.58

221.22

219.70

231.01

(Sgd. ) P R Saldin

(Sgd .) R P Bandaranayake

(Sgd .) S A B P W M R R W T Wegodapola

Chairman

Director

Company Secretary

Colombo

24th October 2024

COMPANY

Stated

Total Equity

Fair Value

Retained

Capital

(In Rs. '000)

Reserve

Earnings

Balance as at 01 April 2023

126,250

(47,118)

2,508,368

2,587,500

Profit for the period

-

-

12,845

12,845

Other comprehensive income

-

802,800

-

802,800

Dividends

-

(39,268)

(39,268)

Balance as at 30 September 2023

126,250

755,682

2,481,945

3,363,877

Balance as at 01 April 2024

126,250

837,550

2,579,442

3,543,242

Profit for the period

-

-

59,305

59,305

Dividends

-

-

(39,268)

(39,268)

Other comprehensive income

-

(188,445)

12,155

(176,290)

Balance as at 30 September 2024

126,250

649,105

2,611,634

3,386,989

Balance as at 01 April 2023

126,250

3,000

(50,245)

2,592,098

2,671,103

(2,801)

2,668,302

Profit for the period

-

-

-

14,747

14,747

-

14,747

Dividends

-

-

-

(39,268)

(39,268)

-

(39,268.00)

Other comprehensive income

-

-

804,193

804,193

-

804,193

Balance as at 30 September 2023

126,250

3,000

753,948

2,567,577

3,450,775

(2,801)

3,447,974

Balance as at 01 April 2024

126,250

3,000

836,329

2,662,842

3,628,421

(2,832)

3,625,589

Profit for the period

-

-

-

61,011

61,011

-

61,011

Dividends

-

-

-

(39,268)

(39,268)

-

(39,268)

Other comprehensive income

-

-

(187,574)

12,155

(175,419)

-

(175,419)

Balance as at 30 September 2024

126,250

3,000

648,755

2,696,740

3,474,745

(2,832)

3,471,913

CHEMANEX PLC

STATEMENT OF CASH FLOW

Cash flow statement

Company

Group

For the period ended 30 September

2024

2023

2024

2023

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Cash flow from operating activities

Cash generated from operations (Note A)

(44,002)

36,093

(42,264)

37,151

Interest paid

(9,712)

(3,391)

(9,712)

(3,391)

Retirement benefit costs paid

(285)

(635)

(285)

(635)

Income tax paid

(18,724)

(70,235)

(18,724)

(70,235)

Net cash outflow from operating activities

(72,723)

(38,168)

(70,985)

(37,110)

Cash flow from investing activities

Acquisition of investments

(15,885)

(235,498)

(15,885)

(235,498)

Addition to property, plant & equipment

(117)

(454)

(117)

(454)

Dividend received from other companies

17,063

6,783

17,063

6,783

Investment in bank deposits

(16,748)

-

(16,748)

-

Disposal of rights

12,155

-

12,155

-

Interest income received

360

6,706

385

7,675

Net cash outflow from investing activities

(3,172)

(222,463)

(3,147)

(221,494)

Cash flow from financing activities

Dividend paid

(39,268)

(39,268)

(39,268)

(39,268)

Settlement of lease liability

(4,940)

(3,254)

(4,940)

(3,254)

Net cash outflow from financing activities

(44,208)

(42,522)

(44,208)

(42,522)

Net decrease in cash & cash

equivalents during the period

(120,103)

(303,153)

(118,340)

(301,126)

Cash & cash equivalents at the beginning of the period

(166,023)

138,425

(113,111)

191,636

Unrealised exchange loss/(gain) on cash & cash equivalent

385

(239)

385

(239)

Cash & cash equivalents at the end of the period (Note B)

(285,741)

(164,967)

(231,066)

(109,729)

Note A - Cash generated from operations

Profit before tax from continued operations

76,226

30,023

76,226

30,023

Profit before tax from discontinued operations

-

-

1,715

1,959

Adjustments for:

Depreciation on property, plant & equipment

1,013

904

1,013

904

Amortization of intangible assets

69

72

69

72

Amortization of right of use of assets

3,805

3,805

3,805

3,805

Provision for retirement benefit

771

719

771

719

Dividend income

(17,063)

(6,783)

(17,063)

(6,783)

Interest income

(360)

(6,945)

(385)

(7,914)

Interest expense

10,702

5,076

10,702

5,076

Unrelaised exchange (gain)/loss

(385)

239

(385)

239

Operating profit before working capital changes

74,778

27,110

76,468

28,100

Increase in trade and other receivables

(49,257)

(50,036)

(49,257)

(50,036)

(Increase)/ decrease in inventories

(26,813)

68,565

(26,813)

68,565

Decrease in trade and other payables

(42,710)

(9,546)

(42,662)

(9,478)

Cash generated from operations

(44,002)

36,093

(42,264)

37,151

Note B - Analysis of cash & cash equivalents at the end of the year

Cash in hand, at bank and investment in government securities

24,259

20,188

78,934

75,426

Interest bearing short-term borrowings

(310,000)

(185,155)

(310,000)

(185,155)

(285,741)

(164,967)

(231,066)

(109,729)

(In Rs. '000)

(a)

Industry segment revenue

Rubber and plastic

202,337

185,349

Coating and packaging

118,643

121,303

Home and personal care

58,724

40,658

Total revenue from external customers

379,704

347,310

PROFIT BEFORE TAXATION

(In Rs. '000)

(b)

Industry segment

Rubber and plastic

47,840

9,785

Coating and packaging

9,571

(1,686)

Home and personal care

1,635

(1,011)

59,046

7,088

Unallocated expenses

(3,805)

(3,805)

Other income

30,000

25,110

Finance income/ (cost) (net)

(9,015)

1,630

Income tax expense

(16,921)

(17,178)

Profit from discontinued operations

1,706

1,902

61,011

14,747

(In Rs. '000)

2

Other income

Dividend income

17,063

6,783

17,063

6,783

Direct sales commission

7,166

10,551

7,166

10,551

Rent income

5,739

7,438

5,739

7,438

Sundry income

32

338

32

338

30,000

25,110

30,000

25,110

3

Net finance income

Company

Group

For the period ended 30 September

2024

2023

2024

2023

(In Rs. '000)

Interest income on deposits

360

6,250

360

6,250

Gain on foreign currency

942

456

942

456

Finance cost (Note 3.1)

(10,317)

(5,076)

(10,317)

(5,076)

-

(9,015)

1,630

(9,015)

1,630

3.1

Finance cost

Company

Group

For the period ended 30 September

2024

2023

2024

2023

(In Rs. '000)

Interest on short-term loans & overdrafts

9,712

3,391

9,712

3,391

Interest on lease

605

1,685

605

1,685

10,317

5,076

10,317

5,076

4

Other operating expenses

Company

For the period ended 30 September

2024

2023

(In Rs. '000)

Impairment of investment in Rainforest Ecolodge (Private) Limited

-

18,092

-

18,092

5

Cash and Cash equivalents

Company

Group

For the period ended 30 September

2024

2023

2024

2023

(In Rs. '000)

Cash and bank - Local Currency

24,259

20,188

24,259

20,188

24,259

20,188

24,259

20,188

Loans & borrowings

(150,000)

(100,000)

(150,000)

(100,000)

Bank overdrafts

(160,000)

(85,155)

(160,000)

(85,155)

Cash & Cash equivalents classified as held for sale and distribution

-

-

54,675

55,238

Cash & Cash equivalents for cash flow purpose

(285,741)

(164,967)

(231,066)

(109,729)