|
|
 |
 |
| Sunday, 09 March 2003 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
CTC contributes Rs. 25 billion to Govt. Ceylon Tobacco Company (CTC) has regained profitability at 2000 levels, which is mainly attributed to the Government's excise restructure in 2002. Revenue to the Government also improved during the same period. Meanwhile, CTC estimates indicate that the illegal cigarette market has declined by almost 60 per cent. According to a CTC news release, profit after tax during 2002 was Rs. 845 million. This was mainly due to the company capturing a part of the illegal market, its continued focus on productivity and cost reduction measures. While this reflected an increase from the 2001 levels, the current profit is in line with the profit delivery of Rs. 845 million in 2000. Paul Hiltermann, Managing Director and Chief Executive Officer CTC said: "Year 2002 has been a challenging and exciting year for CTC, during which the company was able to ensure a reasonable return to its stakeholders. A 45 per cent dividend was paid to shareholders by way of three interim dividends of 15 per cent which were paid in July and October 2002 and in January 2003. There will be no final dividend for 2002 in view of the above". Meanwhile, the Government's successful restructure of excise reversed an unavoidable decline in State revenue from the sale of cigarettes. Government revenue improved to Rs. 24,848 million in 2002. This represents 10 per cent of the Government revenue during the year. Advent International Ltd was formally incorporated as a CTC subsidiary during the period under review. This is a strategic investment which leveraged the strengths of the company in a field which is in line with the Government's stated intention of making the country, the IT hub of the region. Hiltermann added: "We are confident that progressively, this company will demonstrate our ability to make this new venture profitable and add a revenue stream to CTC, as well as earn foreign exchange for the country. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
