Kelani Valley Plantations post tax profit up 61% to Rs. 412 million

A record output of rubber combined with high prices for tea and rubber in 2007 enabled Kelani Valley Plantations PLC (KVPL), the Hayleys Group Plantation Company to post its best ever performance in a financial year.

The company which is owned and managed by Dipped Products PLC, the Hayleys Group's globally-significant rubber glove manufacturing business, has reported that pre-tax profit grew 52 per cent to Rs. 442 million in the year ending December 31, 2007. Profit after tax at Rs. 412 million represented a growth of 61 per cent on a turnover of Rs. 2.83 billion, which was up 21 per cent.

Profit attributable to equity holders of the parent company increased by 62 per cent to Rs 416 million, the highest return generated by KVPL since its incorporation in 1992.

Based on these results, the Board of Directors of the company has recommended the payment of a first and final dividend of 55 per cent for 2007.

Commenting on these results, KVPL Chairman N. G. Wickremeratne said a significant development in the year concluded was a decision by the parent company to waive its management fee of Rs 38 million in its entirety, from 2007.

"The performance of KVPL is particularly noteworthy in the context of the substantial crop losses in tea that the company incurred as a result of the work stoppages late in 2006, and two wage increases in the year which cost the company an additional Rs 236 million," Wickremeratne said.