BPPL : Interim Financial Statements as of 30.06.2022

BPPL Holdings PLC

Unaudited Interim Condensed Consolidated Financial Statements

for the First Quarter Ended

30th June 2022

CEO'S REVIEW

BPPL Holdings April-June '22 Net Earnings up 188% YoY.

BPPL Holdings announced today its unaudited financial results for the three month period April to June 2022. Net earnings for the quarter were Rs.300 million or Rs. 0.98 per share, up by 188% compared to the corresponding period in the previous year where the net earnings were Rs.104 million or Rs.0.34 per share.

YoY revenue growth was 58% in Rupee terms to Rs1.6 billion.

The net earnings increase for the period was due to a combination of the increase in revenue and gross profit margins. Gross profit margins improved to 39% during the period from 29% in the same period the previous year due to product price increases in Jan'22, recommencement of local sourcing of both timber and PET bottles following the lifting of COVID related travel restrictions earlier this year and the effects of steep Sri Lankan Rupee depreciation in March '22.

Group distribution costs largely relating to freight, shipping and related costs, though a higher 8.3% of revenue during the period vs 7.6% during the corresponding period in the previous year, have now started to come down in line with falling global freight rates.

Other income continued to grow as was also seen in the Jan-Mar '22 period by 327% to Rs.11 million following the commissioning of several solar power generation plants earlier this year where solar capacity increased to 2.2MWs from 347KWs.

There were exchange gains of Rs.67 million during the quarter as the Sri Lankan Rupee continued to depreciate in the months of April and May.

Depreciation charges increased by 39% with the completion of Phase 2 of the Yarn expansion program during the Jan- Mar '22 quarter. Finance costs grew four fold following the Yarn phase 2 expansion, interest on term loans taken for the solar projects, higher working capital needs due to significant delays in shipment arrival (to Sri Lanka) and transit times and US Dollar interest rate increases.

I'm also pleased to say that our staff worked tirelessly to overcome a very challenging operating environment due to limited fuel supplies and electricity cuts during the reported period. Electricity supply for continuous operations was barely managed with the help of fuel supplies from private sector operators who had to be paid in hard currency.

We also provided fuel where possible to some key raw material suppliers for them to carry on their work. However, some secondary suppliers were affected by the fuel crisis.

We are making steady progress with obtaining the necessary regulatory approvals for the pending US Dollar 15 million, 10 year term loan from the United States Development Finance Corporation. Disbursement of funds are expected to commence later this year and will be obtained in three tranches over a four year period.

About BPPL

Founded in 1984, BPPL Holdings manufactures a range of high quality, durable brushware and cleaning products for both professional and household applications. Leveraging on its sustainable manufacturing and vertically integrated processes, coupled with commitment to consistent quality, on-time delivery, reasonable pricing and flexibility allows it to supply to major distributors and retailers of cleaning tools

worldwide.

The Group has in recent years diversified its business lines to include synthetic filament extrusion and polyester yarn production. These new lines cater to customers both in Sri Lanka and overseas and are expected to be major contributors to group financials over the medium term.

Sgd.

Dr. Anush Amarasinghe

Managing Director / Chief Executive Officer

July 21, 2022

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B P P L Holdings PLC | Interim Condensed Financial Statements - Three months ended 30 June 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Group		Company
As at	30-June-2022	31-March-2022	30-June-2022	31-March-2022
ASSETS
Non-current assets
Property, plant and equipment	4,498,392,119		3,562,640,106	1,140,583,739	1,107,625,087
Right- of - use assets	39,948,435		42,581,483	(2)	547,706
Intangible assets	47,031,491		10,036,830	2,133,764	1,542,546
Investments in subsidiaries	-		-	9,102,240	9,102,230
	4,585,372,045		3,615,258,419	1,151,819,741	1,118,817,569
Current assets
Inventories	1,181,644,390		713,565,392	175,770,164	85,930,618
Trade and other receivables	2,752,300,723		1,543,043,362	672,404,092	400,256,922
Income tax receivables	137,330		(513,703)	-	-
Other financial investments	62,346,154		282,848,236	-	-
Cash in hand and at bank	281,309,783		232,498,822	20,571,844	5,769,309
	4,277,738,380		2,771,442,109	868,746,100	491,956,849
Total assets	8,863,110,425		6,386,700,528	2,020,565,841	1,610,774,418
EQUITY AND LIABILITIES
Equity
Stated capital	100,371,584		100,371,584	100,371,584	100,371,584
Revaluation Reserve	462,141,930		462,141,930	451,171,280	451,171,280
Cashflow hedge reserves	(1,259,857,092)		(56,214,059)	-	-
Retained earnings	3,608,315,919		2,846,132,327	671,570,386	449,801,076
Total equity	2,910,972,341		3,352,431,782	1,223,113,250	1,001,343,940
Non-current liabilities
Interest-bearing loans and borrowings	1,783,721,111		999,991,123	-	26,439,406
Deferred tax liabilities	239,889,362		223,637,935	129,130,371	118,057,767
Lease liabilities	34,900,990		36,982,830	-	1,085,234
Employee benefit liabilities	77,895,986		114,440,540	19,845,079	29,402,209
	2,136,407,449		1,375,052,428	148,975,450	174,984,616
Current liabilities
Trade and other payables	893,873,485		350,024,255	572,761,940	422,309,747
Income tax liabilities	44,574,825		60,091,211	20,235,878	14,909,902
Lease liabilities	872,487		(1,999,500)	1	(2,773,787)
Interest-bearing loans and borrowings	2,876,409,838		1,251,100,352	55,479,322	-
	3,815,730,635		1,659,216,318	648,477,141	434,445,862
Total equity and liabilities	8,863,110,425		6,386,700,528	2,020,565,841	1,610,774,418
Net assets per share	9.49		10.93	3.99	3.26
Note : The above figures are not audited.

I certify that the financial statements comply with the requirements of the Companies Act No.7 of 2007.

The accounting policies and notes form an integral part of the financial statements.

Sgd

T Vernee

Senior Manager-Finance

The Board of Directors is responsible for the preparation and presentation of these financial statements.These financial figures were approved by the Board on 21st July 2022.

Sgd	Sgd
Dr. Anush Amarasinghe	Mr. Vaithilingam Selvaraj
Director	Director
21-July-2022	21-July-2022

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B P P L Holdings PLC | Interim Condensed Financial Statements - Three months ended 30 June 2022

CONSOLIDATED STATEMENT OF INCOME

		Group			Company
	Quarter ended	30 June	Quarter ended 30 June
Note	2022			2021	2022		2021

Total revenue

Cost of sales

Gross profit

Other operating income/(Loss) Selling and distribution expenses Administrative expenses Results from operating activities

Finance cost

Finance income

Profit before tax

Tax expense

Profit for the period Earnings/(Loss) per Ordinary share

1,585,565,155	1,005,142,443	293,803,679	304,217,739
(966,224,896)	(697,725,797)	(225,241,436)	(251,226,796)
619,340,259	307,416,646	68,562,243	52,990,943
11,948,403	2,799,694	3,129,066	1,065,539
(131,842,540)	(76,841,052)	(11,560,902)	(6,286,692)
(64,598,158)	(91,832,829)	35,568,073	(17,056,377)
434,847,964	141,542,459	95,698,480	30,713,413
(64,237,103)	(15,701,342)	(1,260,326)	(336,059)
3,416,424	7,239,066	2,362	1,016
374,027,285	133,080,183	94,440,516	30,378,370
(73,659,358)	(28,780,983)	(17,362,718)	(5,686,231)
300,367,927	104,299,200	77,077,798	24,692,139
0.98	0.34	0.25	0.08

Note : Figures in brackets indicate deductions. The above figures are not audited.

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B P P L Holdings PLC | Interim Condensed Financial Statements - Three months ended 30 June 2022

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME

		Quarter ended 30 June	Quarter ended 30 June
	Note	2022	2021	2022	2021
Profit for the period		300,367,927	104,299,200	77,077,798	24,692,139
Other comprehensive income
Net gain/(loss) on cash flow hedges	8	(458,588,040)	7,023,561	-	-
Total Other comprehensive income for the period, net of tax		(458,588,040)	7,023,561	-	-
Total comprehensive income for the period, net of tax		(158,220,113)	111,322,761	77,077,798	24,692,139

Note : Figures in brackets indicate deductions. The above figures are not audited.

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