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% increase.

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.