Chemanex : Quarterly Financial Statements as at 31st March 2024

Agility and Adaptability

CHEMANEX PLC | INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED

31ST MARCH 2024

CHEMANEX PLC

Corporate Information

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
	E M M Boyagoda
	S A B Ekanayake
	P A Seresinhe (appointed w.e.f. 17.01.2024 )
Company Secretary	S A B P W M R R W T Wegodapola
Auditors	Ernst & Young
	Chartered Accountants
	201, De Saram Place
	Colombo 10.
Legal Advisers	Nithya Partners
	Attorneys-at - Law
	97A, Galle Road, Colombo 3.
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

CHEMANEX PLC

CHEMANEX PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		Quarter ended 31 March		Twelve months ended 31 March
		2024	2023		Variance		2024	2023		Variance
			%			%
(In Rs. '000)	Note
Revenue	1	224,178	234,971	(5)	788,965	1,063,645	(26)
Cost of sales		(177,897)	(161,008)	10	(600,404)	(665,828)	(10)
Gross profit		46,281	73,963	(37)	188,561	397,817	(53)
Other income	2	18,553	10,666	74	55,808	64,006	(13)
Finance cost		(5,730)	(366)	1,466	(17,409)	(18,604)	(6)
Finance income		(875)	6,925	(113)	5,535	7,632	(27)
Net finance (expense)/ income	3	(6,605)	6,559	(201)	(11,874)	(10,972)	(8)
Administrative expenses		(15,959)	(14,816)	8	(56,703)	(49,225)	15
Distribution expenses/ (reversal)		14,240	(31,267)	(146)	(39,040)	(106,289)	(63)
Impairment (charge)/reversal on trade receivables	5,634	(855)	(759)	4,420	685	(545)
Other operating expenses	4	(30)	(14,618)	(100)	(123)	(42,778)	(100)
Profit before tax		62,114	29,632	110	141,049	253,244	(44)
Income tax expense		(5,561)	(19,624)	72	(29,340)	(85,698)	(66)
Profit for the period		56,553	10,008	465	111,709	167,546	(33)
Other comprehensive income
Items that will not be re-classified to profit or loss
Actuarial loss on retirement benefit obligation		(1,953)	(79)	2,372	(1,953)	(79)	2,372
Net gain/(loss) from fair value change of financial assets	131,578	159,445	(17)	904,805	(4,753)	(19,137)
Income tax expense on other comprehensive income	(19,551)	1,200	(1,729)	(19,551)	1,200	(1,729)
Total other comprehensive income		110,074	160,566	(31)	883,301	(3,632)	(24,420)
Total comprehensive income for the period		166,627	170,574	(2)	995,009	163,914	507
Profit attributable to:
Equity holders of the Company		56,553	10,008	465	111,709	167,546	(33)
		56,553	10,008	465	111,709	167,546	(33)
Other comprehensive income attributable to:
Equity holders of the Company		110,074	160,566	(31)	883,301	(3,632)	(24,420)
		110,074	160,566	(31)	883,301	(3,632)	(24,420)
Earnings per share
Basic/Diluted earnings per share (Rs.)		3.60	0.64	465	7.11	10.67	(33)

Figures in brackets indicate deductions.

The above figures are provisional & subject to audit.

CHEMANEX PLC

CHEMANEX PLC

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Quarter ended 31 March

2024 2023 Variance

%

Twelve months ended 31 March

2024		2023		Variance
		%

(In Rs. '000)	Note
Revenue	1	224,178	234,971	(5)	788,965	1,063,645	(26)
Cost of sales		(177,897)	(161,008)	10	(600,404)	(665,828)	(10)
Gross profit		46,281	73,963	(37)	188,561	397,817	(53)
Other income	2	18,553	10,666	74	55,808	64,006	(13)
Finance cost		(5,730)	(366)	1,466	(17,409)	(18,604)	(6)
Finance income		(875)	6,925	(113)	5,535	7,632	(27)
Net finance income/(expenses)	3	(6,605)	6,559	(201)	(11,874)	(10,972)	(8)
Administrative expenses		(15,959)	(14,816)	8	(56,703)	(49,225)	15
Distribution (expenses)/ reversal		14,240	(31,267)	(146)	(39,040)	(106,289)	(63)
Impairment (charge)/ reversal on trade receivables		5,634	(855)	(759)	4,420	685	(545)
Share of loss of equity accounted investees, net of	tax	-	(12,368)	(100)	-	(40,460)	(100)
Profit before tax		62,144	31,882	95	141,172	255,562	(45)
Income tax expenses		(5,561)	(19,624)	(72)	(29,340)	(85,698)	(66)
Profit after tax from continuing operations		56,583	12,258	362	111,832	169,864	(34)
Profit from discontinued operations, net of tax		(3,171)	(5,544)	(43)	(484)	7,686	(106)
Profit for the period		53,412	6,714	696	111,348	177,550	(37)
Other comprehensive income
Items that will not be re-classified to profit or loss
Actuarial loss on retirement benefit obligation		(1,953)	(79)	2,372	(1,953)	(79)	2,372
Net gain/(loss) from fair value change of financial assets	132,181	161,104	(18)	906,711	(4,106)	(22,183)
Income tax expense on other comprehensive income	(19,551)	1,200	(1,729)	(19,551)	1,200	(1,729)
Other comprehensive income for the period, net of tax	110,677	162,225	(32)	885,207	(2,985)	(29,755)
Total comprehensive income for the period		164,089	168,939	(3)	996,555	174,565	471
Profit attributable to :
Equity holders of the Company		53,415	6,747	692	111,379	177,583	(37)
Non-controlling interest		(3)	(33)	(91)	(31)	(33.00)	(6)
		53,412	6,714	696	111,348	177,550	(37)
Other comprehensive income attributable to :
Equity holders of the Company		110,680	162,258	(32)	885,238	(2,952)	(30,088)
Non-controlling interest		(3)	(33)	(91)	(31)	(33)	(6)
		110,677	162,225	(32)	885,207	(2,985)	(29,755)
Basic/Diluted earnings per share from continuing operations (Rs.)	3.60	0.78	362	7.12	10.81	(34)
Basic/Diluted earnings per share (Rs.)		3.40	0.43	692	7.09	11.31	(37)

Figures in brackets indicate deductions.

The above figures are provisional & subject to audit.

CHEMANEX PLC

CHEMANEX PLC
STATEMENT OF FINANCIAL POSITION
		Company			Group
		31 March		31 March			31 March		31 March
As at	Note	2024		2023			2024		2023
(In Rs. '000)
Non-Current Assets
Property, plant & equipment		19,999	28,399	19,999	28,399
Intangible assets		660	799	660	799
Equity investment at fair value through OCI		298,844	231,719	298,844	231,719
Deferred tax assets		-	14,217	-	14,217
		319,503	275,134	319,503	275,134
Current Assets
Inventories		140,046	194,018	140,046	194,018
Trade and other receivables		198,098	123,155	198,098	123,155
Equity investment at fair value through OCI		3,170,694	2,005,369	3,170,694	2,005,369
Deposits with banks		7,466	7,589	7,466	7,589
Cash & cash equivalents	5	100	138,425		100	138,425
		3,516,404	2,468,556	3,516,404	2,468,556
Assets classified as held for distribution		47,000	47,000		59,980	58,320
		3,563,404	2,515,556		3,576,384	2,526,876
Total Assets		3,882,907	2,790,690	3,895,887	2,802,010
EQUITY & LIABILITIES
Stated capital		126,250	126,250	126,250	126,250
Capital reserves		-	-	3,000	3,000
Revenue reserves		3,416,992	2,461,250		3,499,171	2,541,853
Equity attributable to equity holders of the parent		3,543,242	2,587,500		3,628,421	2,671,103
Non- controlling interests		-	-		(2,832)	(2,801)
Total Equity		3,543,242	2,587,500	3,625,589	2,668,302
Non-Current Liabilities
Loans and borrowings		-	3,880	-	3,880
Retirement benefit obligations		5,815	3,259	5,815	3,259
Deferred tax liabilities		8,114	-	8,114	-
		13,929	7,139	13,929	7,139
Current Liabilities
Trade payable		27,336	7,342	27,336	7,342
Income tax payable		7,803	53,524	7,803	53,524
Accruals & other payable		117,727	125,303	47,418	54,871
Loans and borrowings		172,871	9,882		172,871	9,882
		325,737	196,051		255,428	125,619
Liabilities classified as held for distribution		-	-		941	950
Total liabilities		339,666	203,190		270,298	133,708
Total Equity & Liabilities		3,882,907	2,790,690	3,895,887	2,802,010
Net Assets per share (Rs.)		225.58	164.74	231.01	170.06

The above figures are provisional & subject to audit.

I certify that the above Financial Statements comply with the requirements of the Companies Act No. 7 of 2007.

(Sgd. ) D D Wickramanayake

Chief Financial Officer

The Board of Directors is responsible for these Financial Statements.

Signed for and on behalf of the Board by;

(Sgd .) E M M Boyagoda	(Sgd .) S A B Ekanayake	(Sgd .) S A B P W M R R W T Wegodapola
Director	Director	Company Secretary
Colombo
17th May 2024

CHEMANEX PLC

CHEMANEX PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 MARCH

COMPANY	Stated					Total Equity
	Fair Value		Retained
Capital
(In Rs. '000)
		Reserve		Earnings
Balance as at 01 April 2022	126,250	(49,140)	2,377,890	2,455,000
Profit for the period	-	-	167,546	167,546
Other comprehensive income	-	(3,577)	(55)	(3,632)
De-recognition of financial assets due to disposal	-	5,599	(5,599)	-
Dividends	-	-	(31,414)	(31,414)
Balance as at 31 March 2023	126,250	(47,118)	2,508,368	2,587,500
Balance as at 01 April 2023	126,250	(47,118)	2,508,368	2,587,500
Profit for the period	-	-	111,709	111,709
Dividends	-	-	(39,268)	(39,268)
Other comprehensive income	-	884,668	(1,367)	883,301
Balance as at 31 March 2024	126,250	837,550	2,579,442	3,543,242

Figures in brackets indicate deductions.

The above figures are provisional & subject to audit.

CHEMANEX PLC

CHEMANEX PLC

STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH

GROUP

(In Rs. '000)

Balance as at 01 April 2023

Profit for the period

Dividends

Other comprehensive income De-recognition of financial assets due to disposal

		Capital Reserves
Stated Capital		Reserve on
		Script
		Issue
126,250		3,000
-		-
-		-
-		-
-		-

Revenue Reserves				Non-
		Retained		Total
Fair Value				Controlling		Total Equity
		Reserves
	Earnings			Interest
Reserve
(52,914)	2,451,583	2,527,919	(2,768)	2,525,151
-	177,583	177,583	(33)	177,550
-	(31,414)	(31,414)	-	(31,414.00)
(2,930)	(55)	(2,985)			(2,985)
5,599	(5,599)	-	-	-

Balance as at 31	March 2023	126,250	3,000	(50,245)	2,592,098	2,671,103	(2,801)	2,668,302
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	-	-	-	111,379	111,379	(31)	111,348
Dividends		-	-	-	(39,268)	(39,268)	-	(39,268)
Other comprehensive income	-	-	886,574	(1,367)	885,207	-	885,207
Balance as at 31 March 2024	126,250	3,000	836,329	2,662,842	3,628,421	(2,832)	3,625,589

Figures in brackets indicate deductions.

The above figures are provisional & subject to audit.

CHEMANEX PLC

CHEMANEX PLC
STATEMENT OF CASH FLOW
Cash flow statement	Company		Group
For the period ended 31 March	2024	2023	2024			2023
	Rs. '000		Rs. '000		Rs. '000	Rs. '000
Cash flow from operating activities
Cash generated from operations (Note A)	127,634	384,352	124,060			388,738
Interest paid	(14,541)	(17,363)	(18,248)			(17,363)
Retirement benefit costs paid	(635)	-	(635)			-
Income tax paid	(72,282)		(31,733)		(72,282)			(31,733)
Net cash inflow from operating activities	40,176	335,256	32,895			339,642
Cash flow from investing activities
Acquisition of investments	(327,645)	(73,488)	(327,785)			(73,567)
Addition to property, plant & equipment	(1,245)	(15,056)	(1,245)			(15,056)
Proceeds from disposal of investments	-	3,152	-			3,152
Dividend received from other companies	27,169	36,979	27,169			36,979
Investment in bank deposits	123	(7,589)	123			(7,589)
Interest income received	5,535		7,632		8,950			15,390
Net cash (outflow)/ inflow from investing activities	(296,063)	(48,370)	(292,788)			(40,691)
Cash flow from financing activities
Dividend paid	(39,268)	(31,414)	(39,268)			(31,414)
Settlement of lease liability	(9,882)		(8,979)		(9,882)			(8,979)
Net cash outflow from financing activities	(49,150)	(40,393)	(49,150)			(40,393)
Net increase in cash & cash
equivalents during the period	(305,037)	246,493	(309,043)			258,558
Cash & cash equivalents at the beginning of the period	138,425	(109,053)	191,636			(63,775)
Unrealised exchange gain/(loss) on cash & cash equivalent	589		985		4,296			(3,147)
Cash & cash equivalents at the end of the period (Note B)	(166,023)	138,425	(113,111)			191,636
Note A - Cash generated from operations
Profit before tax from continued operations	141,049	253,244	141,172			255,562
(Loss)/ profit before tax from discontinued operations	-	-	(374)			7,817
Adjustments for:
Depreciation on property, plant & equipment	2,033	679	2,033			679
Impairment of investment in Rainforest Ecolodge (Private) Limited	-	42,690	-			-
Amortization of intangible assets	139	139	139			139
Amortization of right of use of assets	7,612	5,894	7,612			5,894
Provision for retirement benefit	1,238	837	1,238			837
Reversal of provision for impairment of trade receivable	(4,420)	(685)	(4,420)			(685)
Provision for inter company receivable	123	88	-			-
Reversal of provision for write down of inventories	(24,633)	47,189	(24,633)			47,189
Dividend income	(27,169)	(36,979)	(27,169)			(36,979)
Interest income	(5,535)	(7,632)	(8,950)			(11,258)
Interest expense	16,820	17,619	16,820			17,619
Share of equity accounted investees	-	-	-			40,460
Operating profit before working capital changes	107,257		323,083		103,468			327,274
(Increase)/decrease in trade and other receivables	(70,646)	142,070	(70,546)			142,158
(Increase)/ decrease in inventories	78,605	(85,180)	78,605			(85,180)
Increase in trade and other payables	12,418	4,379	12,533			4,486
Cash generated from operations	127,634	384,352	124,060			388,738
Note B - Analysis of cash & cash equivalents at the end of the year
Cash in hand, at bank and investment in government securities	100	138,425	53,012			191,636
Interest bearing short-term borrowings	(166,123)	-	(166,123)			-
	(166,023)	138,425	(113,111)			191,636

Figures in brackets indicate deductions.

The above figures are provisional & subject to audit.

CHEMANEX PLC SEGMENT INFORMATION

Note 1

For the period ended 31 March

Group

2024		2023

	(In Rs. '000)
(a)	Industry segment revenue
	Rubber and plastic	379,161	602,824
	Coating and packaging	307,863	277,799
	Home and personal care	101,941	183,022
	Total revenue from external customers	788,965	1,063,645
	PROFIT BEFORE TAXATION
	(In Rs. '000)
(b)	Industry segment
	Rubber and plastic	62,198	168,978
	Coating and packaging	41,655	44,150
	Home and personal care	997	35,754
		104,850	248,882
	Unallocated expenses	(7,612)	(5,894)
	Other income	55,808	64,006
	Finance cost (net)	(11,874)	(10,972)
	Share of loss of equity accounted investees	-	(40,460)
	Income tax expense	(29,340)	(85,698)
	Profit from discontinued operations	(484)	7,686
		111,348	177,550

The above figures are provisional & subject to audit.

Figures in brackets indicate deductions.

CHEMANEX PLC

Notes to the Financial Statements

For the period ended 31 March

Company

2024		2023

Group

2024		2023

	(In Rs. '000)
2	Other income
	Dividend income	27,169			36,979	27,169			36,979
	Direct sales commission	13,224			12,784	13,224			12,784
	Rent income	15,249			13,863	15,249			13,863
	Sundry income	166			380	166			380
		55,808			64,006	55,808			64,006
3	Net finance income	Company			Group
	For the period ended 31 March	2024			2023		2024			2023
	(In Rs. '000)
	Interest income on deposits	487			4,771	487			4,771
	Staff loan	214			100	214			100
	Interest on repo investments	4,834			-	4,834			-
	Interest on treasury bills	-			2,761	-			2,761
	Finance cost (Note 3.1)	(17,409)			(18,604)	(17,409)			(18,604)
						-
		(11,874)			(10,972)	(11,874)			(10,972)
3.1	Finance cost	Company			Group
	For the period ended 31 March	2024			2023		2024			2023
	(In Rs. '000)
	Interest on short-term loans & overdrafts	14,317			12,629	14,317			12,629
	Interest on lease	2,868			1,241	2,868			1,241
	Loss on foreign currency	224			4,734	224			4,734
		17,409			18,604	17,409			18,604
4	Other operating expenses	Company
	For the period ended 31 March	2024			2023
	(In Rs. '000)
	Impairment of investment in Rainforest Ecolodge (Private) Limited	-			42,690
	Provision for intercompany receivable	123			88
		123			42,778
5	Cash and Cash equivalents	Company			Group
	For the period ended 31 March	2024			2023		2024			2023
	(In Rs. '000)
	Cash and bank - Local Currency	100			25,889	100			25,889
	Investment in Government securities	-			112,536	-			112,536
		100			138,425	100			138,425
	Bank overdrafts	(60,923)			-	(60,923)			-
	Money market borrowings	(105,200)			-	(105,200)			-
	Cash & Cash equivalents classified as held for sale and distribution	-			-	52,912			53,211
	Cash & Cash equivalents for cash flow purpose	(166,123)			138,425	(113,111)			191,636

CHEMANEX PLC