BPPL : Interim Financial Statements as of 30-09-2022

BPPL Holdings PLC

Unaudited Interim Condensed Consolidated Financial Statements

for the Second Quarter Ended

30th September 2022

B P P L Holdings PLC

CEO'S REVIEW

BPPL Holdings July-September '22 Net Earnings up 75% YoY.

BPPL Holdings PLC announced today its unaudited financial results for the three month period July to September 2022. Net earnings for the quarter were Rs.223 million or Rs. 0.73 per share, up by 75% compared to the corresponding period in the previous year where the net earnings were Rs.127 million.

YoY revenue growth was 49% to Rs1.7 billion. Brush revenue was up by 38% to Rs1.6 billion whilst Yarn and Filament revenue grew by 60% to Rs618 million over the Jul-Sep '21 period prior to group eliminations.

The net earnings increase for the period was due to a combination of the increase in revenue and profit margins. Profit margins improved due to product price increases in Jan'22, higher manufacturing margins due to falling commodity prices, lower freight rates, reduction in electricity costs as interruptions to electricity supply reduced considerably towards the later part of the quarter and the availability of fuel which resulted in more locally sourced timber and waste PET bottles which are cheaper than imported materials.

BPPL's Apr-Sep'22 cumulative earnings were Rs523 million, a YoY growth of 131%.

Earnings for the July-September'22 period fell though by 26% compared to the Rs300 million recorded in the Apr-Jun'22 quarter. The Apr-Jun'22 period benefited from Rs67 millions of exchange gains as the Sri Lankan Rupee depreciated in the months of April and May vs the US Dollar whereas Jul-Sep'22 recorded an exchange loss of Rs5 million. If these exchange gains/losses were to be eliminated, earnings were similar to those recorded in the Apr-Jun'22 quarter.

However, revenue growth is likely to face some headwinds in the upcoming Oct-Dec'22 quarter as all three of our brush, yarn and filament revenue segments face uncertainties caused by growing concerns about possible recessions in all our key markets. Customers are likely to reduce purchases during such times whilst running down their product inventories.

The impact on group earnings will, however, be lesser due to continuous improvements to our operating environment with better availability of key timber and PET bottles locally, further reductions in freight rates and falling commodity prices, largely driven by slowing global demand.

With regards to the pending US Dollar 15 million, 10 year term loan from the United States Development Finance Corporation (DFC), the regulatory authorities have finally given their views on how the loan could be structured which the DFC lawyers are now evaluating. We are hoping to complete the remaining work around the agreements soon and are targeting 31st Dec'22 for closing this round of funding.

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B P P L Holdings PLC

CEO'S REVIEW

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/brush 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.

Dr. Anush Amarasinghe

Managing Director / Chief Executive Officer

November 03, 2022

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BPPL HOLDINGS PLC

STATEMENT OF FINANCIAL POSITION

	Group			Company
Balance as at,	30-Sep-22			31-Mar-22	30-Sep-22		31-Mar-22
ASSETS	Rs.			Rs.	Rs.		Rs.
Non-Current Assets
Property, Plant and Equipment	4,481,756,630			4,527,764,672		1,135,392,228	1,145,966,320
Right of Use Assets	60,457,381			40,469,653		21,030,663	-
Intangible Asset	45,157,153			48,294,063		2,013,051	2,253,163
Investment in Subsidiaries	-			-		9,102,240	9,102,240
Deferred Tax Assets	-			-		-		-
Total Non-Current Assets	4,587,371,163			4,616,528,388		1,167,538,182	1,157,321,723
Current Assets
Inventories	1,489,585,785			953,250,795		240,703,197	172,189,640
Trade and Other Receivables	2,428,106,415			2,493,732,685		659,081,567	718,189,136
Income Tax Receivables	137,329			8,101,132		-	-
Other Financial Investment	66,379,769			59,077,600		-	-
Cash and Bank Balances	192,217,469			115,561,187		12,274,693		6,344,765
Total Current Assets	4,176,426,767			3,629,723,399		912,059,457		896,723,541
Total Assets	8,763,797,930			8,246,251,787		2,079,597,639	2,054,045,264
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
Hedging Reserve	(1,183,465,689)			(801,269,052)			-
Retained Earnings	3,830,809,545			3,307,947,573		704,866,924		594,492,602
Total Equity	3,209,857,370			3,069,192,035		1,256,409,788	1,146,035,466
Non-Current Liabilities
Interest Bearing Loans and Borrowings	1,760,634,388			1,910,009,447		-	-
Deferred Tax Liabilities	261,392,369			228,766,544		124,258,589	131,530,497
Lease Liability	34,659,120			35,137,843		-	-
Retirement Benefit Obligations	72,803,019			77,245,499		19,130,482		20,247,919
Total Non-Current Liabilities	2,129,488,897			2,251,159,333		143,389,070	151,778,416
Current Liabilities
Trade and Other Payables	614,916,490			824,258,513		547,855,947	671,721,062
Income Tax Payable	27,176,963			8,957,514		18,843,973	8,586,330
Lease Liability	22,100,720			870,389		21,228,233	-
Interest Bearing Loans and Borrowings	2,760,257,490			2,091,814,003		91,870,628		75,923,990
Total Current Liabilities	3,424,451,664			2,925,900,419		679,798,781		756,231,382
Total Liabilities	5,553,940,560			5,177,059,752		823,187,851	908,009,798
Total Equity and Liabilities	8,763,797,930			8,246,251,787		2,079,597,639		2,054,045,264
Net Asset per Share	10.46			10.00		4.09	3.73

Note: The above figures are not audited.

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

These Financial Statements are in compliance with the requirements of the Companies Act No :07 of 2007.

……………………………

Senior Manager - Finance

The board of directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the board by:

……………………………..	……………………………..
Director	Director
The accounting policies and notes form an integral part of the financial statements.
November 03, 2022
Colombo.

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BPPL HOLDINGS PLC

INCOME STATEMENT

				Group						Company
	Notes	Quarter Ended 30 September	Period Ended 30 September		Quarter Ended 30 September	Period Ended 30 September
		2022	2021		2022	2021		2022	2021		2022	2021
		Rs.		Rs.	Rs.		Rs.	Rs.		Rs.	Rs.		Rs.
Revenue	1,713,112,116	1,152,804,114		3,298,677,270	2,157,946,556		377,892,245	382,567,151		671,695,924	686,784,889
Cost of Sales	(1,165,124,479)		(813,819,063)		(2,131,349,374)	(1,519,702,778)		(303,123,085)		(285,809,965)		(528,364,520)		(540,609,323)
Gross Profit	547,987,637	338,985,051		1,167,327,895	638,243,778		74,769,161	96,757,186		143,331,405	146,175,566
Other Operating Income/ (Loss)	13,862,051	5,362,984		25,810,454	8,160,148		3,678,430	53,230,807		6,807,496	54,296,346
			-
Distribution Costs	(101,835,163)	(86,449,724)		(233,677,703)	(163,290,775)		(17,193,232)	(9,222,892)		(28,754,134)	(15,509,583)
Administrative Expenses	(144,561,761)	(87,875,090)		(209,159,919)	(177,353,456)		(22,463,211)	(18,097,731)		13,104,861	(33,109,939)
Net Finance (Cost)/ Income	(78,636,354)		(9,462,690)		(139,457,033)		(17,940,516)		(2,097,146)		(233,704)		(3,355,110)		(568,748)
Profit Before Tax	236,816,410	160,560,531		610,843,695	287,819,179		36,694,001	122,433,666		131,134,518	151,283,642
Income Tax (Expense)/ Reversal	(14,322,784)	(33,158,298)		(87,982,142)	(61,939,281)		(3,397,463)	(13,059,888)		(20,760,180)	(18,746,119)
Profit for the Period	222,493,626		127,402,233		522,861,553		225,879,898		33,296,539		109,373,778		110,374,338		132,537,523
Earnings/ (Loss) per Ordinary Share (Rs.)	0.73	0.42		1.70	0.74		0.11	0.36		0.36	0.43

Note: The above figures are not audited.

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

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