Sri Lankan tea, rubber and palm oil plantations group Watawala Plantations reported that it had achieved Rs. 146 million in after tax profits for the first quarter of 2010, compared to Rs. 36.8 million in the same quarter of 2009.
In addition, the main areas of the group, tea, rubber, palm oil and marketing, also indicated a positive turnover. Tea production and turnover grew 16% and 30% respectively while rubber turnover increased by 192%, with rubber prices also rising by 129% for the first quarter. Meanwhile, according to a statement by the group; "Palm oil recorded an increase in profits as the company continued to develop this crop as a part of its business strategy.
The profits continued to grow as a result of the enhanced attention paid to the local market, which enjoyed buyer-preference when compared to Indian exports. In forging ahead, the Company also introduced its very own bottled product of refined palm oil, under the brand name, ‘Oliate’".
Further, first quarter exports were driven by bulk tea sold to UK-based Tetley as well as value added tea shipments to Australia. However, there was a drop in export profitability due to a lack of palm oil exports currently.
In the meantime, the group further indicated that the relationship between its Rs. 313 million-turnover marketing unit and India's Tata Tea had helped to attract new buyers as a result of Tata's worldwide “brand preference”. This, along with the expanding market share of its "Zesta" and "Watawala Kahata" brands, facilitated growth in turnover of 14% for this unit. |
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