CARSON CUMBERBATCH PLC Financial Summary
CARS.N0000 · CARSON CUMBERBATCH PLC · Food, Beverage & Tobacco · 2026-08-15
Carson Cumberbatch PLC Financial Summary and Investment Analysis
Executive Overview
Carson Cumberbatch PLC is a diversified group operating across oil palm plantations, oils and fats, beverages, investment holdings, portfolio and asset management, real estate, leisure and management services, with operations/investments spanning Sri Lanka, Indonesia, Malaysia, Singapore and Mauritius.
Periods covered: Q3 2023 to Q2 2026, plus audited 12-month periods ended 2024-03-31, 2025-03-31 and 2026-03-31. All quarters below are natural/calendar quarters.
The central earnings story is unusual: the audited 12 months ended 2026-03-31 produced record revenue of LKR349.10bn but net profit fell 47% to LKR18.36bn, primarily because of a LKR28.28bn Indonesian Presidential Task Force administrative fine and LKR5.60bn of impairments/write-offs. Management's adjusted core profit was LKR59.16bn, up approximately 21%, indicating substantially stronger underlying performance than statutory earnings suggest. Q2 2026 returned to LKR10.14bn profit, although it was 24% below Q2 2025 and operating cash conversion weakened sharply.
Financial Performance
Revenue and Profitability Trends
*LKR bn; quarterly figures are standalone natural quarters. Q1 2026 is derived from audited 12-month results less reported nine-month results and therefore incorporates year-end audit adjustments.*
| Period | Revenue | Gross Profit | Net Profit/Loss | GP Margin | NP Margin |
|---|---|---|---|---|---|
| Q3 2023 | 69.90 | 20.44 | 8.60 | 29.24% | 12.30% |
| Q4 2023 | 69.61 | 19.14 | 3.90 | 27.49% | 5.60% |
| Q1 2024 | 72.83 | 20.25 | 5.30 | 27.80% | 7.27% |
| Q2 2024 | 71.77 | 18.29 | 6.24 | 25.48% | 8.69% |
| Q3 2024 | 78.22 | 19.40 | 4.25 | 24.80% | 5.43% |
| Q4 2024 | 88.66 | 24.37 | 15.95 | 27.49% | 17.99% |
| Q1 2025 | 85.29 | 24.25 | 8.05 | 28.44% | 9.44% |
| Q2 2025 | 84.78 | 25.61 | 13.37 | 30.20% | 15.77% |
| Q3 2025 | 90.58 | 23.79 | 10.76 | 26.26% | 11.88% |
| Q4 2025 | 91.67 | 25.73 | 6.66 | 28.07% | 7.27% |
| Q1 2026 | 82.07 | 23.36 | (12.43) | 28.46% | (15.15%) |
| Q2 2026 | 89.55 | 26.74 | 10.14 | 29.86% | 11.32% |
CY2025 revenue rose 13.1% over CY2024 to LKR352.32bn; gross profit increased 20.7% and net profit 22.4%, with GP margin improving from 26.42% to 28.21%.
For Q2 2026, revenue grew 5.6% YoY, but operating profit fell 14%, PBT 22%, net profit 24% and owners' profit 26%. Administrative and distribution expenses rose 31% and 30%, while FVTPL gains fell 80%. QoQ revenue and gross profit recovered 9.1% and 14.5% from Q1 2026, while profit swung by LKR22.57bn into positive territory.
For the 12 months ended 2026-03-31, revenue was LKR349.10bn (+8%), EBITDA LKR46.22bn (-30%), PBT LKR28.46bn (-46%), net profit LKR18.36bn (-47%) and owners' profit LKR9.10bn (-48%). Management's reconciliation adds back the LKR28.28bn regulatory fine and LKR5.60bn impairment/write-offs while removing FX/fair-value effects, producing adjusted core profit of LKR59.16bn versus LKR48.78bn previously.
From 2022-03-31 to 2026-03-31, revenue CAGR was approximately 19.6%, while net-profit CAGR was only 5.3%, showing materially weaker long-term profit conversion than top-line expansion.
Segment Drivers
| Segment | 12M Revenue to 2026-03-31 | YoY | Operating Profit | YoY |
|---|---|---|---|---|
| Beverage | 135.30 | +8.1% | 19.85 | +20.9% |
| Oil Palm Plantations | 121.33 | -4.9% | 1.70 | -94.7% |
| Oils & Fats | 87.07 | +29.8% | 4.16 | +50.9% |
| Portfolio & Asset Management | 3.86 | +53.7% | 3.26 | +70.3% |
Oil Palm's reported collapse was dominated by the regulatory charge. Operationally, CPO selling prices rose 1.7%, yield/ha improved 4% and oil-extraction rate 3%, although CPO sales volume fell 7%.
Q2 2026 showed continued divergence: Oil Palm revenue/operating profit fell approximately 15%/35% YoY, Oils & Fats revenue rose 23% with net profit more than doubling, and Beverage revenue/net profit increased 16%/20%. Portfolio & Asset Management net profit fell about 72% as fair-value gains dropped sharply.
Balance Sheet Analysis
| LKR bn | 2025-03-31 | 2026-03-31 | 2026-06-30 |
|---|---|---|---|
| Total assets | 313.69 | 359.54 | 377.00 |
| Total equity | 174.70 | 199.72 | 210.89 |
| Owners' equity | 90.63 | 104.86 | 109.68 |
| Total liabilities | 139.00 | 159.82 | 166.11 |
| Current assets | 116.69 | 143.54 | 156.51 |
| Current liabilities | 62.72 | 80.19 | 82.15 |
| NAV/share | LKR461.49 | LKR533.94 | LKR558.48 |
At 2026-03-31, current ratio was 1.79x, debt/equity 38.84%, gearing 27.97%, interest cover 9.78x and equity/assets 55.55%. Debt/equity has improved structurally from 96.05% at 2022-03-31. The current ratio improved further to approximately 1.91x by 2026-06-30.
Reported net debt/(cash) at 2026-03-31 was LKR(11.66)bn, versus LKR8.50bn net debt a year earlier, representing a major strengthening of financial flexibility.
Cash Flow Analysis
| LKR bn | 12M to 2025-03-31 | 12M to 2026-03-31 | Q2 2025 | Q2 2026 |
|---|---|---|---|---|
| Operating cash flow | 49.21 | 42.73 | 11.87 | 4.61 |
| Investing cash flow | (19.64) | (20.68) | (6.42) | (8.01) |
| Financing cash flow | (10.31) | (9.56) | (1.50) | (1.12) |
Annual operating cash flow remained strong but declined 13%. Against reported annual capex of LKR17.67bn, simple operating-cash-flow less capex was approximately LKR25.06bn, comfortably positive.
Q2 2026 is the principal cash-flow warning: operating cash flow dropped 61% YoY, mainly because inventories absorbed LKR5.12bn and trade/other receivables LKR7.72bn. Cash equivalents consequently declined LKR4.52bn during the quarter.
Key Financial Ratios and Growth Indicators
| Metric | 2025-03-31 | 2026-03-31 |
|---|---|---|
| EPS | LKR88.84 | LKR46.35 |
| EBITDA margin | 20.31% | 13.24% |
| RO ordinary shareholders' funds | 19.25% | 8.68% |
| Approx. ROA | — | 5.45% |
| Debt/Equity | 42.58% | 38.84% |
| Revenue/Capital Employed | 1.30x | 1.26x |
| P/E | 5.12x | 14.26x |
| Price/Book | 0.99x | 1.24x |
| EV/EBITDA | 2.76x | 4.61x |
| Dividend/share recognized | LKR3.84 | LKR11.66 |
| Dividend yield | 0.84% | 1.76% |
Approximate 2026 inventory turnover was 11.2x/33 days, while trade-receivable days were around 13 days.
Valuation multiples expanded significantly because the share price rose while statutory earnings contracted. Group dividend cover remained 3.97x, although company-level payout was above company-level earnings.
Dividend/share recognized across the five annual periods ended 2022-03-31 to 2026-03-31 was LKR1.50, LKR1.50, LKR6.80, LKR3.84 and LKR11.66 respectively. A further second interim dividend of LKR7.40/share was approved on 2026-07-01; together with the earlier LKR5.27, dividends declared for the 12 months ended 2026-03-31 total LKR12.67/share.
Economic and Market Context
Management described Sri Lanka's CY2025 recovery as broadening: GDP grew 5%, inflation remained low, reserves reached roughly USD7.0bn by 2026-03 and tourism recorded 2.36m arrivals in CY2025. Risks remain from energy prices, Middle East disruption and exchange-rate pressure.
Indonesia maintained steady growth and supportive palm-oil demand, including biodiesel consumption, but increasingly stringent forest-status and land-administration regulation became a major company-specific risk.
Future Potential and Outlook
- Beverage: export revenue rose 57.4%; premiumisation, adjacent categories and international expansion provide further growth avenues. A three-year efficiency programme generated approximately LKR2.4bn of savings.
- Oils & Fats: new customers, crushing and specialty fats are expanding, with higher-value dairy, confectionery and bakery applications targeted.
- Oil Palm: 4,094 ha were replanted and 1,700 ha of new smallholder planting completed, supporting future productivity but reducing near-term output from replanted areas.
- Portfolio & Asset Management: diversified listed equities, fixed income and developed-market overseas investments provide opportunity, but fair-value movements make earnings inherently volatile.
- Real Estate/Leisure: occupancy improved from 80% to 86%; Pegasus refurbishment provides repositioning potential, although pricing, competition and operating costs remain constraints.
Risks and Challenges
The dominant risk is Indonesian land/forest-status regulation: approximately 5,877 planted hectares and 6,275 unplanted hectares are exposed, while the LKR28.28bn charge demonstrates the potential earnings impact.
Other risks include palm-oil commodity and production volatility; repeated Sri Lankan alcohol excise/VAT increases; geopolitical, freight, energy and FX shocks; equity-market valuation movements; deteriorating working-capital conversion; and capital commitments rising to LKR6.97bn at 2026-06-30. Group guarantees/support undertakings are substantial, while an overseas litigation provision of approximately LKR377m remains.
The Q2 2026 financial statements are unaudited and unreviewed. Audited profit for the 12 months ended 2026-03-31 was approximately LKR0.89bn below the earlier preliminary result.
Shareholder and Corporate Information
Issued shares total 196,386,914. At 2026-06-30, major holdings included Bukit Darah PLC A/C No.2 45.68%, Tower Investments 10.73%, Fulcrum 9.79%, Portelet 7.51%, Newgreens 7.51%, V. Nataraj 5.55% and Employees' Provident Fund 2.85%. The six largest holders collectively controlled approximately 86.77%.
Public holding remained 13.93%, with 2,286 public shareholders versus 2,349 at 2026-03-31; float-adjusted market capitalisation was approximately LKR20.54bn at 2026-06-30. Director holdings included M. Selvanathan 1,805,146 shares and H. Selvanathan 76,852 shares; the other disclosed directors held none.
Market capitalisation was LKR147.44bn at 2026-06-30. The supplied 90-session snapshot shows the share moving from LKR666.75 on 2026-03-27 to LKR734.00 on 2026-08-14 (+10.09%), within a LKR630-LKR864 range. Foreign holdings decreased only 10,000 shares to 23.15%.
Investment Decision Indicators
Strengths: diversified earnings base; strong Beverage and Oils & Fats momentum; adjusted core-profit growth; substantially improved leverage/net-cash position; rising NAV; positive annual free-cash generation; export growth; plantation productivity initiatives.
Weaknesses: statutory earnings, EPS, EBITDA margin and ROE fell sharply; Oil Palm remains a major earnings/regulatory vulnerability; Q2 2026 cash conversion deteriorated; operating-cost growth exceeded revenue growth; investment fair-value gains create volatility; ownership is highly concentrated.
Opportunities: higher-value oils/fats products, beverage exports, plantation productivity following replanting, real-estate occupancy/rent growth and leisure repositioning.
Threats: further Indonesian regulatory charges or land restrictions, commodity-price swings, alcohol-tax pressure, geopolitical/energy disruption, persistent working-capital absorption and large group guarantees/commitments.
Overall assessment: Carson Cumberbatch PLC enters Q2 2026 with a significantly stronger balance sheet and several operating businesses showing healthy underlying growth, but statutory earnings have become heavily distorted by a major regulatory event and remain materially exposed to Oil Palm risk. The critical indicators going forward are whether adjusted core profitability converts into statutory earnings and cash flow, whether Q2 working-capital pressure reverses, and whether Indonesian land issues can be resolved without further material charges.