C.W. Mackie records Rs. 127.7 m operating profit

PROFITS: C.W. Mackie Plc recorded a net turnover of Rs. 2,416.2 million in 2006 compared with Rs 971.7 million in 2005. The increase value in turnover is mainly due to the high prices realised trading latex crepe rubber, its annual report revealed.

The increase value in turnover is mainly due to the high prices realised in trading latex crepe rubber, desiccated coconut and sugar and including the net turnover of the Scan Products Group of companies consequent to the amalgamation of that company, its Chairman W.T. Ellawala said.

The profit from operations is Rs. 127.7 million compared with Rs. 49.3 million in 2005.

The increase in operating profit is due to the high margins realised on the export of latex crepe rubber during the year and as a result of showing the profit from operations of the Scan Group of Companies under the Parent Company.

The net financing cost, including a foreign exchange loss of Rs. 5.5 million on the Danish Kroner (DKK) denominated long term loan, is Rs. 59.8 million (2005 - Rs. 0.431 million gain).

The net profit for the year after providing Rs. 9.9 million for tax is Rs. 57.9 million (2005 - Rs. 46.0 million).

Natural rubber production increased from 104.6 million Kgs. in 2005 to 109.2 million Kgs. in 2006, an increase of 4.65%. This is the highest production recorded since 1996.

Remunerative prices, combined with increased demand led to a series of productivity improvements such as increased tapping intensity, more widespread use of rain guards, planting new high yielding clones and more frequent application of fertiliser.

Latex crepe rubber production accounted for 20.2 million Kgs. of total output in 2006 as compared with 18.7 million Kgs. in 2005. The Company’s share of exports was 4,000 MT representing 25% of total production of latex crepe rubber in 2006.

The gross trading profit on the export of latex crepe rubber was Rs. 57.2 million in 2006 as compared with Rs. 16.7 million in 2005. This significant improvement in profit was due to the high prices that prevailed during the year that enabled to secure higher margins on exports.