Lanka Walltile profit after tax up 16% to Rs. 145m

Lanka Walltile Limited (LWL), showed a 16% increase in its turnover when compared to the previous year by achieving sales of Rs. 911 million against Rs.786 million. The profit after tax also registered a 16% growth at Rs.145 million this year (subject to Audit) against Rs. 125 million in 2005/2006. Earnings per share also increased from Rs. 3.84 to Rs. 4.47.

Whilst LWL showed extremely healthy growth in very difficult local market situations, and competitive export markets, during the year under review, the Group consisting of Lanka Walltile Meepe (Pvt) Limited, its fully owned subsidiary, Lanka Tiles Limited, the Floor Tile manufacturer, Unidil Packaging Limited, the carton manufacturing Company and Ceetee Plantations Limited, the Management Company of Horana Plantations, collectively, also performed well.

Group turnover registered Rs. 5.7 billion as against Rs.4.9 billion the previous year, an 18% growth with profit after tax and after minority interest registering Rs.335 million as against Rs.282 million the previous year, a 19%, increase. All these figures are subject to Audit. The Group earnings per share increased from Rs. 8.68 to Rs. 10.32.

"LWL has been aggressively promoting its wall tiles with a constant revamping of new and exciting designs displayed at its Nawala showrooms and throughout its network of distributors islandwide" said the Company's Managing Director Lucky de Chickera.

"We are also aggressively pushing our export sales in the US, Canada, Hong Kong, Singapore and Australia through participation at international exhibitions and personalised visits to distributors and Agents in these countries" he said.

LWL personnel also visited the 21st Chinese International Ceramic Industry Exhibition in Guangzhou province, Southern China from May 30-June 2 to source new materials, machinery and pigments. "This is the third consecutive year we have visited this exhibition and each year it keeps getting better and better", de Chickera said.

"The competition among the suppliers is getting stronger and more acute, whilst the technology is improving by leaps and bounds". LWL is looking at sourcing much of its requirements from China due to its lower costs and improving quality.