02/03/2009 (LBO) - Sri Lanka's Carson Cumberbatch group said it made a net loss of 241 million rupees in the December 2008 quarter as its Indonesian and Malaysian plantations were hit by the crash in palm oil prices.

The result compared with a restated net profit of 114 million rupees in the December 2007 quarter.

Carson's total sales fell 23 percent to 2.7 billion rupees in the December 2008 quarter from a year ago.

Analysts said the loss stemmed from a sharp reversal of fortunes in the group's oil palm business following the steep fall in crude palm oil prices in Malaysia and Indonesia

The group's beverage sector profit also fell, according to a segmental analysis provided by the company.

It also reported a sharp increase in loss of mark-to-market valuation of short term investments.

However, Carson group net profit in the nine months ending December 31, 2008 shot up 71 percent to 1,533 million rupees from a year ago although sales fell 24 percent to 12.4 billion rupees.

Analysts said the nine-month profits were boosted by the strong performance of its oil palm business in the June quarter when crude palm oil prices shot to record highs and capital gains reported by its investment holdings sector with the sale of holdings in Hayleys and Sri Lanka Telecom.