Watawala performs well this year

Watawala Plantations have performed significantly well during the last financial year according to Chairman, G. Sathasivam.

Tea - Profits before tax on tea improved by 175 per cent when compared with the previous period. The upcountry tea has done well to reach its level of profitability this season. Opportunities are being looked at for further improvements in this area, the company said.

Rubber, recorded a 5.2 per cent increase in profits before tax. Although selling prices were lower when compared to last year, the company recorded a higher production which brought about an year end profitability improvement.

Palm oil (local sale) - Profits before tax was recorded as Rs. 51 million. This materialised due to a small local market that developed for palm oil.

(Exports): The profitability increase was by a marginal 18 per cent. The lower production due to the loss in bought crop was compensated by higher export prices.

In retail marketing the profit before tax grew by 200 per cent as the turnover of 'Zesta' and 'Watawala Kahata' continued to grow.

The year 2007/2008 saw a tremendous growth in the company's fast Moving Consumer Goods (FMCG) business. The persistent efforts, swiftly executed unique strategies and consistent quality of the products helped us to gain consumer preference which has helped us to further consolidate our market position.

Taking into account the economic conditions of the country, Company's products Zesta, Watawala Kahata and Zest bottle water has shown tremendous growth over the previous year.

This year's performance has inspired us to set our sights on being the biggest branded tea company in Sri Lanka shortly," he said.

During the year under review the company invested Rs. 213 million on fixed assets of which Rs. 90.7 million rupees were spent on a new boiler, related accessories and the boiler house which was constructed for the Palm Oil Mill. Rs. 9 million was spent on machinery for the tea factories.

The company also replaced the old fleet of lorries with new vehicles, CEO V. Govindasamy said.