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| Sunday, 02 March 2003 |
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Business |  |
| News Business Features Editorial
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Sharp growth in Tess Agro profits Tess Agro recorded a growth of 252 per cent in its net profits for the nine-months ending December 31, 2002, while the Group net profit recorded an increase of 18 per cent for the same period. The company witnessed a turnaround in operations to record a net profit of Rs. 2.4 million from a Rs. 1.5 million loss recorded during the corresponding period of the previous year. The Group net profit also increased to Rs. 13.5 million from Rs. 11.4 million. This improvement in Tess Agro's performance was mainly attributed to the recent Initial Public Offering (IPO) that boosted the company's working capital which in turn resulted in an increase in export turnover by 40 per cent December 2002. Since then, the company has maintained this level of sales. The retirement of short-term debt enabled the company to reduce its finance cost by 48 per cent from the preceding period. This is despite the fact that the IPO was held in November. The company expects a further boost in profitability and a greater reduction in finance cost in the following year. The recorded group earnings per share on a pro-rata basis is Rs. 2.26 per Rs. 10 share and the net asset value of 14.61 per Rs. 10 share. Tess Agro is a Board of Investment agribusiness company enjoying a 15-year tax holiday (with an unexpired period of nine years as at date). It exports fruits and vegetables and marine products and provides cold chain facilities to the perishables industry. |
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