BALA, MADU both in red

By Indika Sakalasooriya

The two plantation companies controlled by business tycoon Harry Jayawardena’s Stassen Exports and Distilleries Company are both in red, as they recorded net losses for the second quarter of the year 2011, the financials showed.

Balangoda Plantations PLC (BALA) which grows both tea and rubber recorded a net loss of Rs.0.7 million during the period under consideration against a net profit of Rs.84 million during the same period of the previous year.

The cost of sales of the company during the period have gone up to Rs.734 million from Rs.639 million while the revenue fell to Rs.736 million from Rs.786 million.

According to the segmental information provided with the financials, the gross profit from rubber during the first half of 2011 has doubled to Rs.186 million while the tea operations have recorded a loss of Rs.9 million against a gross profit of Rs.169 million Year on Year (YoY).

In addition, the cash flow statement of the company did not show an YoY increase in retirement benefit provisions for the first half of 2011.

The Madulsima Plantation PLC (MADU), which is a tea-only plantation, recorded a net loss of Rs.117 million during the second quarter of 2011 against a net profit of Rs.14 million during the same period the previous year.

The revenue of the company during the period under consideration dropped to Rs.454 million from last year’s Rs.614 million. But the company has booked a gain in change in fair value of biological assets of Rs.36 million during the first half of 2011.

Madulsima cash-flow statement showed an increase in retirement benefit provision of Rs.102 million during the first half vis-à-vis Rs.66 million in the same period last year.

source - www.dailymirror.lk