Bogawantalawa increases profits
Chairman D J Ambani. |
Bogawantalawa Tea Estates has recorded a 159 percent increase in
profits before tax and a 150 percent increase in profit after tax
vis-a-vis 2008/09 financial year.
Accordingly in 2009/10 year it recorded a profit before tax of Rs 134
million and the earnings per share works out to Rs 2.26 per share.
Despite the Sri Lankan national tea production reducing by 9 percent
to 290 million kgs from the previous year, the annual tea production of
the company recorded an increase from the previous year figure of 7.95
million kgs to 8.16 million kgs.
The company has also realized an overall net sale average of Rs.
362.22 per kg during the year in consideration against Rs. 273.68 of
last year, recording a 32 percent increase. However, the cost of
production for 2009/10 year was Rs 331.21 per kg against Rs 271.31 last
year. This increase was mainly due to higher prices paid for green leaf,
increased wages and escalated fuel and fertilizer prices.
Bogawantalawa Tea Estates Chairman, D J Ambani said “the company
managed to record a 150 percent growth in after tax profits and ploughed
back Rs 203 million on the capital development program during the
financial year”.
Ambani said key issue to be addressed by the regional plantation
companies is the capital formation methodology to further invest in
areas such as tea planting, soil building and agro-forestry and the
marketing efforts in a sustainable manner, if Sri Lanka to compete
aggressively in the global tea market.
He further stated that an active intervention from government in
developing the bond market would definitely ease the financial burdens
of the tea industry.
The company has made a considerable progress due to consistent
marketing efforts which increased the market share especially in highly
competitive markets such as US, Holland and Lithuania.
The company continues to focus on diversification strategies such as
eco-friendly leisure projects, mini hydro power projects, dairy farming,
and forestry projects to maximize revenues from non-core business
initiatives.
“This is where an innovative method of raising funds by way of a
long-term bond issue will come into play to address the much needed
capital formation issue”, the Chairman said. |