Palm oil enhances Watawala profits

The plantation arm of Sunshine Holdings, Watawala Plantations PLC recorded a PAT of Rs 186 m for Q2 2012/13 compared to a loss of Rs 16.8 m reported in the corresponding period a year ago, a media release from the company stated.

The tea sector, which accounted for 65 percent of the turnover of the company for Q2 showed a 12 percent increase in production to 2.07 million kgs compared to the corresponding quarter a year ago. The Net Sale Average of tea showed a Rs 103.38 improvement (against Q2 a year ago) and several cost reductions and improved agronomical practices implemented by the company, appear to show results.

Rubber production fell by 38 percent to 108,460 kgs over the corresponding period last year and the Net Sale Average dipped by Rs 183.25 (against Q2 a year ago), thus creating a marginal loss in Q2 of Rs 5.1 m. The wet weather reported in Udugama, which accounted for 22 wet days in September resulted in the lower productivity.

Palm oil continued to be the highest profit earner for the company with a profit of Rs 188 m in Q2. With the Palm oil production improving by 15 percent to 2.2 million kgs against the corresponding period a year ago, with higher yields being recorded.