Agalawatte Plantations records highest net profit, turnover in 2007
Agalawatte Plantations PLC (APL), the Mackwoods Group Plantation
company has recorded a turnover of Rs. 1.88 Billion and a net profit of
Rs. 165.3 Million in 2007, both of which are the highest in its history.
Commenting on the results, Dr. Chris Nonis, Chairman of Agalawatte
Plantations and also Chairman of the Mackwoods Group, said that this
profit, which translates to a record EPS of 6.6 and an increase of 88%
last year, is commendable, considering the unexpected wage increase
granted to the workers in November 2007, the escalation of input costs
and the negative impact of the previous year’s strike.
All three major crops, Tea, Rubber, and Oil Palm, contributed to the
bottom line, which is now reaping the benefits of the Company’s long
term strategy of diversification to ensure sustainability.
Given this improved bottom line, the Board of Directors has
recommended a dividend of 20%, compared with the 12.5% paid last year.
The Board, continuing its policy of fiscal prudence and mindful of
the needs of the capital development and diversification program of the
Company, has proposed to transfer Rs. 70.0 Mn to Reserves. APL’s rubber
yield in 2007 is the highest ever achieved, and denotes an increase of
26% over the previous year.
The Company harvested a Rubber crop of four million Kgs., with a
yield per hectare of 1,059 Kgs, which also reflects its implementation
of best agronomic and management practices.
The Rubber turnover at Rs. 923 Mn. is also the highest on record, and
is an increase of 35% compared with the previous year. Despite a 3%
decline in the auction price of Latex Crepe, the Company’s Rubber NSA
increased by 10% over 2006, aided by stringent quality controls which
ensured a premium product with a high prime grade percentage.
The aftermath of the strike of December 2006 and the drought in the
first quarter of 2007, which contributed to the drop in National Tea
Production in 2007, resulted in a 6% decrease in APL’s tea crop against
2006. Despite this setback however, the Company succeeded in improving
its tea NSA’s by 44% during the year, thereby increasing the turnover of
tea to Rs. 859 Million, an increase of 35% compared to the previous
year.
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