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| Sunday, 16 May 2004 |
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| News Business Features Editorial
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CTC records Rs. 450 M. more to Govt. revenue Ceylon Tobacco Company recorded a Rs. 450 million (7%) increase in government revenue during the first quarter ended 31st March 2004, mainly attributed to the declining volumes of illegal and counterfeit products in the local market. The group recorded an operating profit of Rs. 330 million, recording a marginal growth against the same period last year. The company in a press release stated that government revenue has grown from Rs 6.3 billion during the three months ended 31st March 2003 to Rs. 6.7 billion during the same period 2004. The contribution to government revenue constitutes of high incidences of excise and sales related taxes paid to the government, representing 80% of the consumer sales price. The growth of 7% in government revenue comes in the wake of CTC & law enforcement authority's efforts in adopting effective strategies to minimise the impact of counterfeit and illegal trade of cigarettes. The estimated volumes of these illegal products mainly "Gold Seal" have seen a decline during the period under review. The press release further states that the company will work closely with the authorities, to ensure the elimination of illegal products and will continue to pursue strategies in this direction which poses a significant threat to government revenue and the legal tobacco industry. The marginal growth in operating profit was a result of the increase in the group's net revenue, primarily due to increased sales volumes of CTC's mid prices and value for money brands. Ceylon Tobacco Company declared an interim dividend of 10% on the 2nd of April 2004 which will be paid on the 29th of April 2004. |
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