Watawala Plantations PLC recorded impressive growth during the first quarter of 2010, posting a profit after tax of Rs. 120 million. The profit after tax recorded in the previous quarter was Rs. 39 million. The Company marked a significant improvement in turnover of its key products including tea, rubber and palm oil, forging ahead into the next quarter.
The Group's profits grew to Rs. 146 million from Rs. 36.8 million recorded in the previous quarter. A profit of Rs. 72 million was achieved with the transfer of the Net Assets of the Fast Moving Consumer Goods Sector (FMCG). The profits earned by the FMCG sector, which is not included in the profits earned by the Company, forms a part of the profits of the Group. The activities of the FMCG sector come under the purview of Watawala Marketing Ltd, a fully owned subsidiary of Watawala Plantations.
 |
| Mr. Vish Govindasamy, Managing Director, Watawala Plantations PLC |
Tea production as well as the turnover recorded a growth of 16% and 30% respectively, over the figures of the same quarter of the previous year. While the Net Sales Average (NSA) rose by 9%, the quantity of own-crop increased by 0.11 million kilograms.
In keeping with its policy of protecting the environment, the Company adopted prudent measures aimed at promoting field and product development through sound agricultural practices and catering to the needs of consumers. This policy continued to pay dividends, as tea prices remained reasonably attractive at the Colombo Auctions.
Turnover of rubber also grew by an impressive 192% with the rubber prices improving by 129% during the period under review.
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'.
Exports during the period consisted of bulk tea to Tetley of UK and the export of value-added tea to Australia. The marketing of value added tea is handled by the Company's fully owned subsidiary Watawala Marketing Ltd. The decline in export-profit is attributable to the absence of palm oil exports during the current period. The Company's association with Tata Tea proved significant with new buyers being introduced through its worldwide brand preference.
Watawala Marketing Ltd. also posted a turnover of Rs. 313 million, representing a 14% growth compared with the same quarter of the previous year. This favorable outcome was due to the fact that its main brands 'Zesta' and 'Watawala Kahata' continued to expand their market share.
Going forward, Watawala Plantations aims to further improve on the value additions and high productivity of the first quarter of 2010, with emphasis on accelerating its growth momentum and improving profitability. |
E-mail
