Ceylon Tea Brokers reports loss but confident of the future
View(s):The Ceylon Tea Brokers Ltd, the only tea broker listed on the stock exchange, has reported a post-tax profit drop to Rs 39.8 million in the 2012-13 financial year, down from Rs 56.7 million while quantity of tea sold rose to 29.6 million kg vs 27.4 million and the value increased to Rs. 12.4 billion vs Rs. 10.8 billion.
Company Chairman Chrisantha Perera, a veteran tea broker, said the decline in profits were due to increasing overheads in an effort to improve the business model, for future growth and the payment of higher taxes
“I am reasonably confident that the steps we have taken would result in an improved performance in the coming year and we will be able to maintain the growth of the company through professionalism and improved services that are required of a tea broker,” he said.
Suranga Perera, Director/Chief Executive Officer, in his review said that, “We highlight our performance on the value based market share since we as a company concentrate on increasing the value of our catalogue by enhancing the quality aspect of the teas offered through us”.
He said they strived for this improvement through proper manufacturing advisory services geared to market demands and consequently the overall sale average of the teas sold through their catalogues reflected an attractive premium over the national average.
The company did particularly well in the low grown segment and currently holds a market share of 14 per cent. This category consists of a greater concentration of privately owned tea factories who are more often than not at the demanding end of the business due to ever increasing competition for the purchase of green leaf.
“We believe that the company has reached a stage where it is no longer considered a small player in the industry. It has been a great challenge in achieving this position within an industry where change is slow and established ways still considered the norm in doing business,” he said.
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