Lanka Walltiles PLC says it has been able sustain profits despite having to wind-down one of its factories.
Capping the first six months of the 2010 financial year, Lanka Walltile Group recently announced buoyant first half results that clearly validated its commitment to prudent management practices and clear strategic vision. Making the most out of a positive Sri Lankan business environment, the group’s three main sectors – i.e. Ceramic tiles, Plantation, and Packaging – recorded a 19.1% increase in turnover and a 42.5% surge in gross profit compared with the same period in 2009, a statement issued by the company said.
It said: "The group’s achievement is even more impressive considering that its foreign markets are still recovering from the lingering effects of the global financial crisis. Although these difficult global conditions contributed to the closure of the group’s export-oriented Balangoda tile factory, Lanka Walltile went beyond its statutory obligations to its employees, paying more than Rs. 211 million to affected workers as compensation, an amount that was significantly more than that stipulated by the government under the TEWA scheme. Even with this substantial charge, the group’s net profit after tax was almost the same as that of the corresponding period in 2009, an affirmation of Lanka Walltile’s tireless efforts.
Indeed, the Lanka Walltile Group’s profit before tax during the first half of the 2010 financial year rose 22% to Rs. 315.98 million compared with the same period in 2009, spurred largely by an increase in domestic demand, especially in the construction sector.
In order to meet the increased demand for large tiles, Lanka Walltile is investing Rs. 700 million during the current financial year to expand production capacity in the Meepe factory. With civil construction nearing completion and premium Italian machinery due to arrive in this month, production capacity at the newly expanded Meepe factory will increase by 3,600 square metres per day.
With the upgraded production capacity and capability of the Meepe factory, the Lanka Walltile group will introduce a range of larger format tiles that are bound to be a huge hit with discerning Sri Lankan customers. The group will also be exploring new overseas markets for these new product offerings and is excited about the prospect of introducing an array of sophisticated new designs.
The group’s commitment to maximizing operational efficiency led it to combine the marketing activities of Lanka Walltile PLC and Lanka Tiles PLC. With 17 franchise shops now in operation nationwide, this merger has further elevated the Group’s overall domestic sales performance and promises to deliver sales and efficiency gains in the second half of the financial year.
Befitting its belief in improving its human resources and its commitment to continually improving its performance, the group has made significant investments in employee training, which includes in-house, local external and foreign programmes. These training programmes range from courses focused on technical and technological aspects to those revolving around administrative and marketing expertise.
The government’s recently announced budget has further enhanced the Group’s prospects, with incentives for construction spending ensuring that demand for Lanka Walltile products will continue to grow. Indeed, the Group’s dedication to continual improvement has put it in a strong position to take advantage of the post-war economic boom, allowing the Lanka Walltile Group to continue its success well into the future."
source - www.island.lk
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