Tuesday, November 20, 2012

Malwatte Valley profitability surges

Malwatte Valley Plantations PLC (MVPP) has seen its nine months turnover and gross profit fall from a year ago but an increase in operating income and a reduction in costs has seen net profits rise.

For the nine months ended September 30, 2012, MVPP reported a net profit of Rs. 310.2 million, 14 percent higher than Rs. 272.2 million recorded a year earlier and a whopping 223 percent higher than the Rs. 86.6 million profit for the full year ended December 31, 2011.

"We have an envious record in that MVPP has made recurring profits over the past decade and that too from two basic crops, tea and rubber. This year, the profit from tea amounted to Rs. 151 million while from rubber it amounted to Rs. 191 million," the company’s managing director W. L. Bogtstra said in a statement.

"This is a result of close monitoring of costs, premium prices for produce and the implementation of innovative management practices despite increases in inputs and unjustifiable wage increases," he said.

During the nine months period, turnover fell 8 percent year-on-year to Rs. 2.2 billion. Sales and administration costs fell 8.6 percent and 10.66 percent respectively to Rs. 1.8 billion and Rs. 111.7 million. Operating income surged 83 percent year-on-year to Rs. 98 million.

source - www.island.lk

No comments: