Lanka Tiles turnover grows 2.8 percent to Rs. 2,571m

Lanka Tiles PLC turnover increased by 2.8 percent to Rs. 2,571 million for the financial year ended March 31, 2009.

Chairman, Lanka Tiles PLC, Anthony A Page said, “It is most commendable for the company to have achieved profits this year considering the economic conditions that prevailed locally and globally.”

“The Company’s gross profit showed an increase of 3.1 percent to Rs. 748 million. The company succeeded in maintaining a gross profit margin of 29.1 percent in spite of sharp rises in energy costs during the most part of the year that accounted for over 35 percent of the total cost.

The company achieved an after tax net profit of Rs. 282 million though it is a 9.8 percent decrease from the last year.”

“These results were achieved at a time when the country and the company were facing many challenges.

The ongoing conflict in the North and the East, which has come to an end, had impacted on investment negatively in the industrial and construction sectors, which directly affected Lanka Tiles plc as well.

The steep rise in energy prices in the first and second quarters had affected the cost of manufacturing. However, judging by the performance of the company during the first three months of the current year, we expect the company to post better results in 2009/2010,” he said.

In 2009, Lanka Tiles plc will expand its franchise network by one outlet each month, taking its products to the farthest towns in the island. “The Company had continuously invested over the years to increase the production capacity which now stands at 9,500 sq. mt. per day.

We have committed Rs. 335 million during the year under review to modernize and upgrade the plant and machinery to further improve the manufacturing capability, quality and designs of our range of products.

Construction work on the warehouse commenced in August 2008 and the building is expected to be operational by November 2009,” he said.

The company also benefited by the Government’s restrictions on imported tiles by way of an import taxes of 30 percent, which discouraged imports, he said.

AK