Ceylon Tea Brokers records growth

by Sanjeevi JAYASURIYA

The improved performance of Ceylon Tea Brokers (CTB) during the financial year under review compared to the corresponding period the previous year is encouraging as the volatility in the global market continued further.

It is a positive sign given that the country produced less tea, which sold at lower auction prices, which has a direct correlation to the earnings of a tea broking company, Ceylon Tea Brokers Executive Director, Waruna de Silva told Sunday Observer Business.

In the year under review, the company recorded a revenue of Rs.185.69 m, compared to Rs. 157.49 m in the previous financial year. While the profit after tax increased by 58 percent, from Rs. 36.2 m in the previous year to Rs. 57.26 m in the financial year.

The company was also able to record a 26.9 percent return to shareholders, he said.

During the year under review, Ceylon Tea Brokers was focused mainly on consolidation. This approach has proved as to be a successful endeavour, based on the feedback received from the industry, clients and the regulators.

Along with consolidation, the company has also recorded a moderate growth with their market share based on the volume of tea sold increasing from 8.77 percent to 9.15 percent.

In line with the company’s objectives, its market share, in terms of the value of tea sold has grown to 9.51 percent during the financial year.

This is of significant importance as it indicates a better quality catalogue, which has always been the aim of Ceylon Tea Brokers.

The company monitors each factory at all times. This strategy continues to help clients to not only to increase the quality of the tea produced, but the resultant increase in the prices obtained at the auctions and the increase of quantity produced and improved productivity, thereby improving their bottom line.

The “Golden Cup Awards”, were also held during the year, aimed at recognising excellence in production. The awards aim to reward those who have achieved superior results during the year, while motivating others to improve their quality and value.

Ceylon Tea Brokers continues to remain strong in the Low Grown category and gaining even more clientele from the private tea factory owners.

The company’s market share in this sector has grown from 12.50 percent to 13.61 percent during this year under review, he said.“This is a demanding end of the business and we are pleased that more and more individual owners of factories consider us as the preferred broker to market their teas”, he said.

The growth in our profit has been good and we hope to keep up the momentum by further cost consolidation.The infrastructure and capacity of the Company at present can easily handle a higher volume of tea and as the bulk of the costs are fixed, an increase in volume would have a direct impact on the bottom line of the Company.

The growth in profit has been commendable and CTB aims to keep up the momentum by further cost consolidation. The company will also focus on infrastructure and capacity of the Company.Ceylon Tea Brokers will continue to move forward with the momentum they have achieved over a comparatively short period. The company identifies that continued success can only be realised through professionalism with a high sense of commitment to the four important criteria that comprise its core values which will remain as a key factor in the future as well, de Silva said.