Lanka Tiles profit growth for nine consecutive years
The Group Turnover of Lanka Walltile Limited increased from Rs. 4,210
million to Rs. 4,907 million, an increase representing 17% which is
indeed satisfactory considering the overall business climate in the
country. Group profit after tax, at Rs. 282 million was commendable and
represented a 39% increase over the previous year.
All of the Group's sectoral activities recorded results very much in
keeping with our expectations said the chairman Anthony A. Page in the
annual report for the year ended March 31, 2006.
He said the Group is involved in four broad sectors - Ceramics,
Plantations, Packaging and Manufacture of Wooden Flooring. In the
ceramic sector our focus is on both wall tiles and floor tiles. In spite
of escalating energy prices that had a knock-on effect on all other
costs, the ceramic sector performed creditably during the year.
Lanka Tiles Limited (LTL) registered a 25.2% growth in net profit
after tax. LTL has recorded growth in profits for nine consecutive
years. This trend is expected to continue this year as well especially
in view of the investments the company made over the past three years
totalling Rs. 900 million LTL paid a dividend of Rs. 1.25 per share
during the year whilst a further Rs. 2.50 has been proposed by the
directors for the current year.
Managing Director Lucky de Chickera said Lanka Walltile Limited (LWL)
and its wholly owned subsidiary Lanka Walltile Meepe (Pvt) Limited (LWMPL)
enjoyed one of their best years, performance wise, particularly in the
local market as the products manufactured and marketed catered
essentially to the construction industries requirement.
The consolidated revenue of LWL and LWMPL for the financial year
2005/06 was Rs. 1,447 billion which reflected an increase of Rs. 224.8
million over the previous financial year, a 18.4 percentage increase.
The total after tax profit of LWL/LWMPL was Rs. 186.907 million
compared to Rs. 98.297 million in 2004/05 and this reflected a 90.15%
The total sales volume at LWL was 1.036 million sq. mtrs whilst LWMPL
sales volume was 1.213 million sq. mtrs, which reflected a 2.249 million
sq. mtrs consolidated sales volume.
This reflected an increase of 185,070 sq. mtrs consolidated sales
over the previous year.
He said the Local Network continued to increase its performance from
last year, both in volume and value at LWL and LWMPL. Consolidated sales
value registered a 27.08% increase from Rs. 648.8 million to Rs. 825.8
million while volume sales increased from 1.209 million sq. mtrs to
1.349 sq. mtrs registering a 11.55% increase.