Further the Group’s profits stood at Rs 157 million compared to Rs 45.4 million recorded in the same quarter of the previous year. The above profits include an extraordinary Rs 72 million of profits recorded on the disposal of Net Assets of the FMCG division to Watawala Marketing Ltd. The profit recorded in Watawala Plantations PLC (WPPLC) shown in the company does not include FMCG profits as it is now shown in the Group and is now carried out by a fully owned subsidiary in the name Watawala Marketing Ltd, the company said in a statement.
Tea production showed a growth of 14% compared to the previous year while the turnover of tea grew by a similar percentage. A 1% drop in NSA was recorded and the loss in the Tea segment was Rs 140 million, a 15% improvement from the same period last year. The cost of production (COP) of Tea declined due to better productivity.
Turnover of Rubber grew by 173% to Rs 122.5 million as the Rubber prices improved by 114% during the period under review. The slight weather improvements in the Udugama area resulted in a marginal improvement in production as well.
Palm Oil recorded a reasonable profit as the company continued to develop this crop in the Udugama area. Recording Rs 135 million in the first half of the year the profits showed a 10% growth over the first half of last year. The company has now begun to refine Crude Palm Oil to market its own bottled produce sold under the brand name of Oliate.
Exports during the period consisted of a small quantity of bulk tea exports to Tetley of UK and the loss was due to the export division being unable to meet the fixed overheads. The gross margins on bulk tea exports were minimal. However, the company has now been able to secure a large order of value added tea to Tetley and the first container has already left Sri Lanka this month.
Watawala Marketing Ltd now handles the value added teas to Australia and is reported in their accounts. The absence of palm oil exports during the current period also shows a deficit in the export profits. Recording a turnover of Rs. 612.3 million, 23% higher than the same quarter of the previous year, the bulk of the turnover was recorded from the sale of their main products Zesta and Watawala Kahata. Gift Shop Sales continued to grow with a steady influx of tourists into the country.
source - www.island.lk
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