Losses have confronted one of Hayleys’ tea units, Talawakelle Tea Estates PLC (TTE) and its subsidiaries as tea markets get hit by the Middle East political crisis and US sanctions against Iran.
The company this week reported consolidated turnover of Rs 2.79 billion and a net loss of Rs 73.8 million for the year ending 31st December 2011.
A 28 % increase in the cost of wages from April 2011, which translated to an additional cost of Rs 244.8 million for wages and related gratuity provisions combined with unsettled conditions in key international tea markets contributed to these results.
At company level, net profit declined from Rs 135 million in 2010 to a loss of Rs 99.2 million, the company said in a statement.
The Hydro Power sector generated a net profit of Rs 25.4 million for the group, enabling it to reduce consolidated loss after tax.
The company incurred capital expenditure of Rs 170.2 million including Rs 11.1 million on worker welfare, housing, water and sanitation in the year reviewed.
Estates that recorded a healthy profit in the first quarter were adversely impacted when the increase in wages came in to effect from beginning of the second quarter. The situation was further compounded with prices at the Colombo Tea Auctions declining from mid-year. The depressed prices continued to the end of 2011, mainly because of softer demand from countries in the Middle East such as Syria, Iran and Libya. |
E-mail
