Group net profit after tax increased 3.1 percent to 65.5 million rupees in the year ended March 31, 2010 from 63.5 million the year before.
Group sales were stagnant at 1.35 billion rupees. Basic earnings per share were 2.09 rupees compared with 2.02 rupees the previous year.
The report showed finance costs halved and that the firm paid a Withholding Tax on inter-company dividends amounting to 16.6 million rupees.
"However, turnover remained flat primarily due to the meagre performance of the powdered milk sector in our business which pulled down our figures with a 55 percent decline in turnover," Kotmale chief executive Jude Fernando told shareholders in the annual report.
The firm withdrew from the powdered milk import business.
The down turn in the powdered milk business was compensated for partly by growth in Kotmale's liquid milk-based product business which saw a 28 percent rise in sales.
"This noteworthy performance by the liquid milk-based product sector contributed immensely to maintaining and improving upon the growth indicators of all operations," Fernando said.
He said the company was expanding production to meet increased demand following the end of the island's 30-year ethnic war in May 2009 which has led to an economic revival.
"Our focus now will be in enhancing production capacity in anticipation of the envisaged future growth we foresee in the next few years."
Fernando said more investment is planned, although he did not give details.
"One area that will see us give added focus is a further penetration into the tourism industry, which has seen an unprecedented fillip since the end to the war in May 2009," Fernando said.
Tourist arrivals have risen by almost 50 percent this year.
source - www.lbo.lk
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