Kelani Valley Plantations PLC (KVPL) has reduced its first quarter net loss of Rs. 46.6 million to a nominal loss of Rs. 5.3 million for the six months ending June 30, 2009.
The company said in a statement it recorded a post-tax profit of Rs. 41.3 million in the second quarter of the year, offsetting losses incurred in the drought-hit first quarter, despite a decline of 30 % in turnover in the period reviewed. Turnover for the six months was Rs. 1,163.9 million.
Spells of adverse weather have resulted in significant volume reductions in both tea and rubber for the Dipped Products Group’s plantation arm, with declining rubber prices compounding the impact on both turnover and profit, as revealed by figures released to the Colombo Stock Exchange.
KVPL’s tea production volume fell by 28% in the six months under review whilst rubber production declined by 12%. Coupled with a 43% drop in rubber prices, the combined revenue from both commodities fell by Rs. 537.7 million. The average price of rubber in the first six months of 2009 was Rs. 128 per kg less than the average for the corresponding half of 2008, the statement said.