A decline in prices of tea and rubber in the final quarter of 2008 has hurt the full year performance of Kelani Valley Plantations PLC (KVPL), the Hayleys Group-owned company reported last week.
It reported that turnover for the year ending December 31, 2008 grew 10 % to Rs 3,109 million. However, net profit before tax declined 31 % to Rs 300 million, while profit after tax fell 32 % to Rs 278.7 million.
The press release quoted Hayleys Group Chairman N. G. Wickremeratne as saying that KVPL would have ended 2008 with a far more attractive bottom line if not for the highly detrimental impact of the global financial collapse on commodity trading.
“The year under review commenced on a promising note and, apart from minor seasonal fluctuations, tea prices maintained healthy levels with prices overall being considerably higher than 2007, till the end of the third quarter,” he said. “October saw a complete reversal with sale averages declining to a two year low and an accumulation of a large proportion of unsold catalogued volumes by end November. This coupled with a similar downturn in rubber prices severely eroded profit margins,” Mr. Wickremeratne explained.
Turnover growth was derived from both tea and rubber, which recorded increases of 13 % and 3 % respectively contributing Rs. 1,966 million and 1,091 million and accounting for 63 % and 35 % of total turnover.
Profit attributable to equity holders of the company declined 33.5 % to Rs 275.8 million from Rs 415 million in 2007. |
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