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Sri Lanka textile mill ups export to Bangladesh, but losses mount
22 Aug, 2013 08:51:57
Aug 22, 2013 (LBO) - Kuruwita Textile Mills Plc, a unit of Sri Lanka's Brandix Apparel group said exports to Bangladesh rose in the June 2013 quarter but losses increased amid cost increases.
The firm lost 211 million rupees in the quarter up 355 percent from a year earlier. It reported losses of 8.46 rupees per share in accounts filed with the Colombo Stock Exchange.

Kuruwita Textiles said revenues rose 11 percent to 1.82 billion rupees in the June quarter, but expenses rose at a faster 23 percent to 1.98 billion rupees, giving a gross loss of 157 million rupees against a profit of 44.7 million rupees a year earlier.

Exports to Bangladesh had grown to 41 percent of sales in the June quarter from 31 percent last year.

"However, it has to be noted that the Bangladeshi orders carry comparatively lower margins due the lower average selling prices partly due to the effects of the off season for the company’s product range," chairman Aslam Omar told shareholders.

He said raw material costs were 15 percent higher than last year but they could not be passed on fully with higher selling prices.

Electricity costs were also higher.

"The management has been actively looking at mitigating these adverse impacts and is currently reviewing alternatives," Omar said without elaborating.
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