Watawala Plantations posts Rs. 726 m PAT
Agribusiness company, Watawala Plantations PLC (WATA), a member of
Sunshine Enterprise, has posted a 62% growth in profits (YoY) to report
Rs 726 million PAT for the year ending March 31, 2013 (FY 2012/13).
Boosted by strong palm oil performances, the company continues to
benefit from its diversified crop portfolio in a volatile commodity
environment.
The diversified portfolio for Watawala has recorded strong revenue
growth to post Rs 5.3 billion, a 28% increase from the previous year.
Good agricultural practices by the company saw record yields in their
diversified crop portfolio.
The increase in production and yield in palm oil has again
contributed significantly to bottom line growth and we are confident the
momentum can be maintained for the next year.
Palm oil output (crude palm oil) grew 13% to 7.4 million kgs while
tea production increased 7.5% to 6.2 million kgs. Rubber production saw
an 18% decrease, mainly due to adverse weather conditions and reduced
hectarage to 0.53 million kgs.
The largest palm oil producer in the country, posted a PAT of Rs 545
million for the year, a growth of 28.5% YoY while Revenue was Rs 1.3
billion. Palm oil is the largest profit earner for the company. The
production of palm oil improved as the company adopted several modern
agricultural practices, which is now producing results. Several new
fields came in for harvesting during the year under review.
Tea experienced a renaissance year, posting a PAT of Rs 66 million on
a revenue of Rs 3.6 billion. A substantial turnaround from the loss of
Rs 407 million last year.
Improved agronomical practices implemented by the company, now appear
to be showing good results. Rubber production dropped by almost 18% and
the average NSA for the year dipped by Rs. 76, thus creating a marginal
profit during the year under review.
Several hectares of rubber were abandoned due to old age, which is
due for uprooting and replanting.
Despite the uncertainties in the global economy, the Group remains
positive on its long-term prospects due to continued increase in the
production of palm oil. |