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KVPL
post–tax profit climbs to Rs 158 million in 1Q
An improved contribution from the tea sector has enabled Kelani
Valley Plantations PLC (KVPL), the plantation company of Dipped
Products PLC, the Hayleys Group’s multinational hand
protection business to post a 147 per cent increase in post-tax
profit in the three months ending March 31, 2008.
According to figures released to the Colombo Sock Exchange
this week, the company’s post tax profit grew to Rs 158
million from Rs. 64 million in the corresponding quarter of
2007, while pre-tax profit rose by 140 per cent to Rs 162
million in the same period.
Turnover increased to Rs 852 million from Rs 604 million,
an increase of 41 per cent. Turnover from tea and rubber increased
by 58 per cent and 19 per cent respectively, contributing
to this growth.
Commenting on the company’s performance, KVPL Managing
Director Kavi Seneviratne said: “We are encouraged by
the quarter’s results, especially in the context of increased
costs of inputs and high inflationary conditions.”
He said the tea sector which recorded an operating loss during
the same period last year had shown a satisfactory improvement
to reflect a six fold increase. “The rise in prices was
mainly driven by the shortfall in Kenyan production due to
the political turmoil in that country. The positive impact
on price compensated for the shorter quality season experienced
during the first quarter,” Seneviratne said.
He also pointed out that the significant improvement in tea
production in the first quarter stems from the poor production
of last year consequent to the work stoppage in late 2006.
Rubber production fell marginally during the period under
review due to unfavorable weather conditions. However, operating
profit from rubber improved due to stronger prices, Seneviratne
said disclosing that although profit from rubber increased
by only 7 per cent, it constituted 60 per cent of the operating
profit.
Kelani Valley Plantations was incorporated in 1992 and manages
27 estates with an extent of more than 13,000 hectares, divided
almost equally in to tea and rubber. All of the company’s
black tea producing factories have been certified compliant
with HACCP, ISO 22000:2005 and SGS-TASL product quality standards,
ensuring that the teas they manufacture meet the highest required
international food safety standards.
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