KVPL net profit Rs 160 m
The continuing buoyancy in the rubber market, coupled with stable
prices for tea in its third quarter, has enabled Kelani Valley
Plantations PLC (KVPL) the Dipped Products PLC plantation subsidiary to
consolidate its turnaround from a loss-making 2009 and post healthy
growth for the nine months ending September 30.
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KVPL’s Kelani estate |
Profit before tax for the period at Rs 173 million reflected an
improvement of Rs 388 million over the loss of Rs 215 million for the
corresponding nine months of last year.
Net profit increased by Rs 380 million to Rs 160 million from a 3Q
2009 loss of Rs 220 million, and turnover grew 52 percent to Rs 2.8
billion, the company said. Profit attributable to equity holders of the
company amounted to Rs 155.5 million.
KVPL's earnings per share for the period stood at Rs 4.57 from a loss
of Rs 6.51 for the first nine months of last year.
Pointing out that 2009 had been an extraordinarily bad year for the
plantation sector, KVPL Managing Director Kavi Seneviratne said the
company's gains in the first nine months of the current year represent a
modest result in the context of KVPL's potential and past results.
"Highly erratic weather patterns of this year have resulted in our
rubber crop declining by 6 percent in comparison with the previous
season," he said, noting that the rubber crop was the lowest ever for a
nine-month period since privatization.
"Fortunately, high prices generated a 98 percent improvement in
revenue from rubber despite the lower crop, while tea achieved increases
of 24 percent and 36 percent respectively in volume and turnover,"
Seneviratne said.
He also disclosed that KVPL's profit growth was achieved despite a
more than three-fold increase in lease rental paid to the State.
The final quarter of 2010 is expected to generate better results,
enabling the company to end the year on a stronger note, Seneviratne
added.
A member of the Hayleys Group, Kelani Valley Plantations manages 27
estates, over 13,000 hectares in extent, divided almost equally in to
tea and rubber. All of the company's black tea producing factories are
certified as HACCP and ISO 22000-2005 compliant with regard to product
and quality standards, ensuring that the product meets the highest
international food safety parameters.
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