Malwatte Valley Plantation profit soars 274% to Rs. 243.37m

Malwatte Valley Plantations Limited, one of the leading plantation companies in tea and rubber improved its performance considerably in 2006. The turnover grew by 15.83% to Rs. 1,756,004,093 and the profit by a remarkable 273%, from Rs.88.97 Mn. to Rs.243.37 Mn.

"We did very well in 2006", said Managing Director and CEO, W.L. Bogtstra, "despite the setbacks we encountered, and it looks like 2007 will be even better".

The main setback was the workers' agitation for higher wages. This started with a "Go-Slow", and culminated in a strike of 14 days, causing an estimated loss of revenue of Rs.100 Mn. Further setbacks were the higher wage bill and the steep increase in the price of fertiliser. "That we managed to overcome these setbacks can be attributed to several factors. Among them are the stoppage of Management Fees and the Company policy of very tight control over costs of production.

As a result, we have one of the lowest COP in the industry, both in tea and rubber. We have continuously impressed on our staff the necessity of tight cost controls and that awareness has now gradually trickled down to all our employees. Another factor which has contributed considerably to the impressive performance of our Company is our emphasis on quality, he said.