Ceylon Cold Stores PLC

Ceylon Cold Stores PLC has a debt-to-equity ratio of 1.38, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.66, suggesting potential short-term liquidity constraints. The company's return on equity (ROE) is 7.91%, which is a measure of profitability relative to shareholders' equity, while its return on assets (ROA) is 2.19%, indicating the efficiency of asset utilization in generating profit.

The company's profitability is reflected in its gross profit of LKR 5.2 billion and operating income of LKR 3.1 billion. These figures suggest a relatively stable profit margin, although the ROA is below the typical benchmark for the Non-Alcoholic Beverages industry. The company's net income of LKR 1.62 billion indicates a solid bottom-line performance, but the ROE is modest compared to industry peers.

Ceylon Cold Stores PLC's revenue is concentrated in a single economic region, with no disclosed segment or geographic diversification in the provided data. This lack of diversification may expose the company to regional economic fluctuations and regulatory changes. The company's capital structure is characterized by a high level of long-term debt, which may limit its financial flexibility and increase interest costs.

The company's growth trajectory is mixed. While the operating cash flow of LKR 13.96 billion indicates strong cash generation, the free cash flow of LKR 256.93 million is relatively low, suggesting limited capacity for reinvestment or shareholder returns. The capital expenditure of LKR -3.35 billion indicates a reduction in investment, which may affect long-term growth prospects. Analysts have a neutral outlook, with one "buy" recommendation and no "strong buy" or "sell" ratings, indicating a cautious but not bearish sentiment.

The company's risk profile includes a medium liquidity risk and a low dilution risk. The key financial flag is the negative net cash position after subtracting total debt, which may signal potential liquidity stress. The company's debt load and limited free cash flow could constrain its ability to service debt obligations or invest in growth opportunities. The absence of dilution risk is a positive factor, but the company's reliance on debt financing may increase financial risk in a rising interest rate environment.

Recent events and disclosures do not indicate any material changes in the company's operations or financial position. The company's financial performance and risk profile remain consistent with the latest available data. There are no recent filings or transcripts that suggest significant operational or strategic shifts.

Net income surged 73.9% year-over-year to LKR 5.96 billion in FY2025, demonstrating strong profitability growth.

Revenue grew at a robust 23.1% compound annual growth rate over the last four fiscal years.

Cash conversion ratio of 8.64 ranks as best-in-class compared to the 1.59 cohort median.

Debt-to-equity ratio of 1.38 places the company in the bottom quartile of its peer cohort.

The company faces a high credit risk flag, signaling potential concerns regarding debt servicing or default.

Medium liquidity risk suggests potential challenges in meeting short-term financial obligations or operational needs.

Return on assets of 2.19% remains relatively low, indicating modest efficiency in utilizing total assets for profit.

Revenue LKR 157.93B, +13,1% YoY; Operating income +38,7% YoY.

• ▍Revenue LKR 157.93B, +13,1% YoY
• ▍Operating income +38,7% YoY
• ▍Net income +73,8% YoY
• ▍Free cash flow −50,2% YoY
• ▍Net margin 3.8%

Revenue LKR 139.62B, +10,7% YoY; Operating income +31,9% YoY.

• ▍Revenue LKR 139.62B, +10,7% YoY
• ▍Operating income +31,9% YoY
• ▍Net income +36,4% YoY
• ▍Free cash flow +557,2% YoY
• ▍Net margin 2.5%

Revenue LKR 126.15B, +49,2% YoY; Operating income +30,4% YoY.

• ▍Revenue LKR 126.15B, +49,2% YoY
• ▍Operating income +30,4% YoY
• ▍Net income +21,5% YoY
• ▍Free cash flow +122,0% YoY
• ▍Net margin 2.0%

Revenue LKR 84.54B, +22,9% YoY; Operating income +15,4% YoY.

• ▍Revenue LKR 84.54B, +22,9% YoY
• ▍Operating income +15,4% YoY
• ▍Net income −11,6% YoY
• ▍Free cash flow −284,4% YoY
• ▍Net margin 2.4%

Revenue LKR 68.77B; Operating income LKR 4.11B.

• ▍Revenue LKR 68.77B
• ▍Operating income LKR 4.11B
• ▍Net margin 3.4%