Quarterly Financial Statements as at 31st December 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

No 199, Kew Road

Colombo 02

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 (resigned w.e.f.31 st December 2024 )

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 31 December

Nine months ended 31 December

2024

2023

Variance

2024

2023

Variance %

%

(In Rs. '000)

Note

Revenue

1

253,368

217,477

17

633,072

564,787

12

Cost of sales

(178,452)

(167,748)

6

(448,235)

(422,507)

6

Gross profit

74,916

49,729

51

184,837

142,280

30

Other income

2

15,091

12,145

24

45,091

37,255

21

Finance cost

(6,914)

(6,603)

5

(17,231)

(11,679)

48

Finance income

1,074

(296)

(463)

2,376

6,410

(63)

Net finance expense

3

(5,840)

(6,899)

(15)

(14,855)

(5,269)

(182)

Administrative expenses

(15,449)

(13,748)

12

(43,709)

(40,744)

7

Distribution expenses

(23,916)

8,893

(369)

(56,254)

(53,280)

6

Impairment reversal/(imapirment) on trade receivables

(1,645)

(1,115)

48

4,273

(1,214)

452

Other operating expenses

4

(120)

(93)

29

(120)

(93)

29

Profit before tax

43,037

48,912

(12)

119,263

78,935

51

Income tax expense

(14,173)

(6,601)

(115)

(31,094)

(23,779)

31

Profit for the period

28,864

42,311

(32)

88,169

55,156

60

Other comprehensive income

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

Profit from sale of rights

4,639

-

100

16,794

-

100

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

877,023

(29,573)

(3,066)

688,578

773,227

(11)

Total other comprehensive income

881,662

(29,573)

(3,081)

705,372

773,227

(9)

Total comprehensive income for the period

910,526

12,738

7,048

793,541

828,383

(4)

Profit attributable to:

Equity holders of the Company

28,864

42,311

(32)

88,169

55,156

60

28,864

42,311

(32)

88,169

55,156

60

Other comprehensive income attributable to:

Equity holders of the Company

881,662

(29,573)

(3,081)

705,372

773,227

(9)

881,662

(29,573)

(3,081)

705,372

773,227

(9)

Earnings per share

Basic/Diluted earnings per share (Rs.)

1.84

2.69

(32)

5.61

3.51

60

(In Rs. '000)

Note

Revenue

1

253,368

217,477

17

633,072

564,787

12

Cost of sales

(178,452)

(167,748)

6

(448,235)

(422,507)

6

Gross profit

74,916

49,729

51

184,837

142,280

30

Other income

2

15,091

12,145

24

45,091

37,255

21

Finance cost

(6,914)

(6,603)

5

(17,231)

(11,679)

48

Finance income

1,074

(296)

(463)

2,376

6,410

(63)

Net finance expense

3

(5,840)

(6,899)

(15)

(14,855)

(5,269)

(182)

Administrative expenses

(15,449)

(13,748)

12

(43,709)

(40,744)

7

Distribution expenses

(23,916)

8,893

(369)

(56,254)

(53,280)

6

Impairment reversal/(imapirment) on trade receivables

(1,645)

(1,115)

48

4,273

(1,214)

452

Profit before tax

43,157

49,005

(12)

119,383

79,028

51

Income tax expenses

(14,173)

(6,601)

115

(31,094)

(23,779)

31

Profit after tax from continuing operations

28,984

42,404

(32)

88,289

55,249

60

Profit from discontinued operations, net of tax

(1,059)

785

(235)

647

2,687

(76)

Profit for the period

27,925

43,189

(35)

88,936

57,936

54

Other comprehensive income

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

Profit from sale of rights

4,639

-

100

16,794

-

100

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

878,775

(29,663)

(3,063)

691,201

774,530

(11)

Other comprehensive income for the period, net of tax

883,414

(29,663)

(3,078)

707,995

774,530

(9)

Total comprehensive income for the period

911,339

13,526

6,638

796,931

832,466

(4)

Profit attributable to :

Equity holders of the Company

27,925

43,217

(35)

88,936

57,964

53

Non-controlling interest

-

(28)

100

-

(28)

27,925

43,189

(35)

88,936

57,936

54

Other comprehensive income attributable to :

Equity holders of the Company

883,414

(29,635)

(3,081)

707,995

774,558

(9)

Non-controlling interest

-

(28)

(100)

-

(28)

(100)

883,414

(29,663)

(3,078)

707,995

774,530

(9)

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

1.85

2.70

(32)

5.62

3.52

60

Basic/Diluted earnings per share

(Rs.)

1.78

2.75

(35)

5.66

3.69

53

CHEMANEX PLC

STATEMENT OF FINANCIAL POSITION

Company

Group

31

31

31 March

31

31

31 March

December

December

December

December

2024

2024

As at

Note

2024

2023

2024

2023

(In Rs. '000)

Non-Current Assets

Property, plant & equipment

13,095

22,473

19,999

13,095

22,473

19,999

Intangible assets

556

695

660

556

695

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

-

312,495

269,104

319,503

312,495

269,104

319,503

Current Assets

Inventories

192,522

117,964

140,046

192,522

117,964

140,046

Trade and other receivables

240,839

193,980

198,098

240,839

193,980

198,098

Equity investment at fair value through OCI

3,915,138

3,036,536

3,170,694

3,915,138

3,036,536

3,170,694

Deposits with banks

24,889

7,955

7,466

24,889

7,955

7,466

Cash & cash equivalents

5

44,488

20,199

100

44,488

20,199

100

4,417,876

3,376,634

3,516,404

4,417,876

3,376,634

3,516,404

Assets classified as held for distribution

47,000

47,000

47,000

63,327

62,502

59,980

4,464,876

3,423,634

3,563,404

4,481,203

3,439,136

3,576,384

Total Assets

4,777,371

3,692,738

3,882,907

4,793,698

3,708,240

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

4,171,265

3,250,365

3,416,992

4,256,834

3,335,079

3,499,171

Equity attributable to equity holders of the parent

4,297,515

3,376,615

3,543,242

4,386,084

3,464,329

3,628,421

Non- controlling interests

-

-

(2,832)

(2,829)

(2,832)

Total Equity

4,297,515

3,376,615

3,543,242

4,383,252

3,461,500

3,625,589

Non-Current Liabilities

Retirement benefit obligations

6,687

3,703

5,815

6,687

3,703

5,815

Deferred tax liabilities

8,114

-

8,114

8,114

-

8,114

14,801

3,703

13,929

14,801

3,703

13,929

Current Liabilities

Trade payable

6,756

19,740

27,336

6,756

19,740

27,336

Income tax payable

18,978

5,355

7,803

18,978

5,355

7,803

Accruals & other payable

101,949

116,763

117,726

31,784

46,430

47,418

Loans and borrowings

337,372

170,562

172,871

337,372

170,562

172,871

465,055

312,420

325,736

394,890

242,087

255,428

Liabilities classified as held for distribution

-

-

-

755

950

941

Total liabilities

479,856

316,123

339,665

410,446

246,740

270,298

Total Equity & Liabilities

4,777,371

3,692,738

3,882,907

4,793,698

3,708,240

3,895,887

Net Assets per share (Rs.)

273.61

214.98

225.58

279.24

220.56

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

20th January 2025

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

-

-

55,156

55,156

Other comprehensive income

-

773,227

-

773,227

Dividends

-

(39,268)

(39,268)

Balance as at 31 December 2023

126,250

726,109

2,524,256

3,376,615

Balance as at 01 April 2024

126,250

837,550

2,579,442

3,543,242

Profit for the period

-

-

88,169

88,169

Dividends

-

-

(39,268)

(39,268)

Other comprehensive income

-

688,578

16,794

705,372

Balance as at 31 December 2024

126,250

1,526,128

2,645,137

4,297,515

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

-

-

-

57,964

57,964

(28)

57,936

Dividends

-

-

-

(39,268)

(39,268)

-

(39,268.00)

Other comprehensive income

-

-

774,530

774,530

-

774,530

Balance as at 31 December 2023

126,250

3,000

724,285

2,610,794

3,464,329

(2,829)

3,461,500

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

-

-

-

88,936

88,936

-

88,936

Dividends

-

-

-

(39,268)

(39,268)

-

(39,268)

Other comprehensive income

-

-

691,201

16,794

707,995

-

707,995

Balance as at 31 December 2024

126,250

3,000

1,527,530

2,729,304

4,386,084

(2,832)

4,383,252

CHEMANEX PLC

STATEMENT OF CASH FLOW

Cash flow statement

Company

Group

For the period ended 31 December

2024

2023

2024

2023

Rs. '000

Rs. '000

Rs. '000

Rs. '000

Cash flow from operating activities

Cash generated from operations (Note A)

(12,978)

87,275

(13,111)

89,224

Interest paid

(16,569)

(9,087)

(16,569)

(9,087)

Retirement benefit costs paid

(285)

(635)

(285)

(635)

Income tax paid

(19,919)

(71,948)

(19,919)

(71,948)

Net cash outflow from operating activities

(49,751)

5,605

(49,884)

7,554

Cash flow from investing activities

Acquisition of investments

(55,866)

(257,940)

(55,866)

(257,940)

Addition to property, plant & equipment

(294)

(1,246)

(294)

(1,246)

Proceeds from disposal of property, plant & equipment

1,036

-

1,036

-

Dividend received from other companies

24,728

14,123

24,728

14,123

Investment in bank deposits

(17,808)

-

(17,808)

-

Disposal of rights

16,794

-

16,794

-

Interest income received

593

6,410

1,459

7,379

Net cash outflow from investing activities

(30,817)

(238,653)

(29,951)

(237,684)

Cash flow from financing activities

Dividend paid

(39,268)

(39,268)

(39,268)

(39,268)

Settlement of lease liability

(4,997)

(7,411)

(4,997)

(7,411)

Net cash outflow from financing activities

(44,265)

(46,679)

(44,265)

(46,679)

Net decrease in cash & cash

equivalents during the period

(124,833)

(279,727)

(124,100)

(276,809)

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

(366)

385

(366)

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

(290,471)

(141,668)

(236,826)

(85,539)

Note A - Cash generated from operations

Profit before tax from continued operations

119,263

78,935

119,383

79,028

Profit before tax from discontinued operations

-

-

656

2,726

Adjustments for:

Depreciation on property, plant & equipment

1,490

1,464

1,490

1,464

Amortization of intangible assets

104

104

104

104

Amortization of right of use of assets

5,708

5,708

5,708

5,708

Gain on disposal of property, plant & equipment

(1,036)

-

(1,036)

-

Provision for retirement benefit

1,157

1,079

1,157

1,079

Dividend income

(24,728)

(14,123)

(24,728)

(14,123)

Interest income

(593)

(6,776)

(1,459)

(7,745)

Interest expense

17,616

11,431

17,616

11,431

Unrelaised exchange (gain)/loss

(385)

366

(385)

366

Operating profit before working capital changes

118,596

78,188

118,506

80,038

Increase in trade and other receivables

(42,741)

(70,825)

(42,741)

(70,825)

(Increase)/ decrease in inventories

(52,476)

76,054

(52,476)

76,054

(Decrease)/ increase in trade and other payables

(36,357)

3,858

(36,400)

3,957

Cash generated from operations

(12,978)

87,275

(13,111)

89,224

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

Cash in hand, at bank and investment in government securities

44,488

20,199

98,133

76,328

Interest bearing short-term borrowings

(334,959)

(161,867)

(334,959)

(161,867)

(290,471)

(141,668)

(236,826)

(85,539)

(In Rs. '000)

(a)

Industry segment revenue

Rubber and plastic

322,173

283,003

Coating and packaging

196,147

208,533

Home and personal care

114,752

73,251

Total revenue from external customers

633,072

564,787

PROFIT BEFORE TAXATION

(In Rs. '000)

(b)

Industry segment

Rubber and plastic

74,629

36,047

Coating and packaging

13,293

16,373

Home and personal care

6,933

330

94,855

52,750

Unallocated expenses

(5,708)

(5,708)

Other income

45,091

37,255

Finance income/ (cost) (net)

(14,855)

(5,269)

Income tax expense

(31,094)

(23,779)

Profit from discontinued operations

647

2,687

88,936

57,936

(In Rs. '000)

2

Other income

Dividend income

24,728

14,123

24,728

14,123

Direct sales commission

11,592

11,808

11,592

11,808

Rent income

7,696

11,158

7,696

11,158

Profit from disposal of property, plant & equipment

1,036

-

1,036

-

Sundry income

39

166

39

166

45,091

37,255

45,091

37,255

3

Net finance income

Company

Group

For the period ended 31 December

2024

2023

2024

2023

(In Rs. '000)

Interest income on deposits

593

6,410

593

6,410

Gain on foreign currency

1,783

-

1,783

-

Finance cost (Note 3.1)

(17,231)

(11,679)

(17,231)

(11,679)

-

(14,855)

(5,269)

(14,855)

(5,269)

3.1

Finance cost

Company

Group

For the period ended 31 December

2024

2023

2024

2023

(In Rs. '000)

Interest on short-term loans & overdrafts

16,569

9,087

16,569

9,087

Interest on lease

662

2,344

662

2,344

Loss on foreign currency

-

248

-

248

17,231

11,679

17,231

11,679

4

Other operating expenses

Company

For the period ended 31 December

2024

2023

(In Rs. '000)

Provision for inter- company receivables

120

93

120

93

5

Cash and Cash equivalents

Company

Group

For the period ended 31 December

2024

2023

2024

2023

(In Rs. '000)

Cash and bank - Local Currency

44,488

20,199

44,488

20,199

44,488

20,199

44,488

20,199

Loans & borrowings

(150,000)

(100,000)

(150,000)

(100,000)

Bank overdrafts

(184,959)

(61,867)

(184,959)

(61,867)

Cash & Cash equivalents classified as held for sale and distribution

-

-

53,645

56,129

Cash & Cash equivalents for cash flow purpose

(290,471)

(141,668)

(236,826)

(85,539)