Horana Plantations PLC increased its net profits for the year ended 31 March 2010 as revenue increased during the period by 28% to Rs.1.7 billion, compared to the previous financial year. According to the company’s financial statements released this week, Horana Plantations net profit for the current year increased by 71% to Rs.94 million from Rs.55 million in 2009. Despite a 27% increase in the cost of sales, gross profit for the year was up 38% to Rs.204 million.
The company’s profit from operations increased by 53% for the period under review to Rs.148 million. Other income declined by 37% to Rs.9.4 million. According to the segmental information, revenue from tea and rubber increased during the year. Gross profit from tea was Rs.66 million compared to Rs.49 million last year while gross profit from rubber increased to Rs.102 million as against Rs.59 million in 2009.
The company noted that the collective agreement between the Regional Plantation Companies and trade unions was signed on 16 September 2009 while the wage increase has been in effect from April 2009.