LWPLC group turnover crosses Rs. 5 billion

LWPLC had another year of exceptional performance during 2006/2007 with the Group turnover crossing the Rs. 5 billion milestone by achieving Rs. 5.7 billion turnover, a 17.8% improvement over the previous year.

The Chairman Anthony A. Page, in his review said that 'Group profit after tax was a healthy Rs. 375 million which was a 31% increase over 2005/2006.'

Page said that 'the Ceramic Sector in the Group performed creditably well during the year.' 'This growth was in the backdrop of the rapid increase in energy prices during the year. Consequently the cost of energy as a percentage of total cost increased from 25% in 2005/2006 to 31% in 2006/2007'.

He said that 'although a lull in large residential and commercial development was observed during the year, home building continued unabated and helped sustain demand for the product manufactured by this sector of the Group'.

Whilst Lanka Tiles Limited reported a net profit of 272.9 million for the year under review, Horana Plantations recorded a pre-tax profit of Rs. 153.9 million which is the highest recorded in its 14-year history and Uni-dil Packaging which manufactures corrugated cartons recorded a pre-tax profit of Rs. 50.14 million.

The Company (LWPLC) and its fully owned subsidiary Lanka Walltile Meepe (Pvt) Limited (LWMPL) experienced a great year where the consolidated revenue registered an all-time high of Rs. 1.67 billion turnover, an increase of Rs. 226 million over the previous year, a 15.64% increase.

Managing Director/CEO Lucky de Chickera said 'the consolidated after tax profit of LWPLC and LWMPL was also an all-time high of Rs. 220.25 million compared to Rs. 193.67 million in the previous year reflecting a 13.7% increase.

Basic group earnings per share over the last five years increased from Rs. 4.65 in 2003 to Rs. 11.54 in 2007.

The MD/CEO said that during the year 2006/2007 the LWPLC factory had significantly reduced finished goods stocks through strategic sales and production moves while LWMPL factory significantly increased productivity through various planned implementation and controls.