Nov 11, 2014 (LBO) - Ceylon Tobacco Company, the Sri Lanka unit British American Tobacco, shows a steady growth of profits after tax (PAT) to 6,631 million rupees for the 9 months ended 30th September 2014 compared to the same period of last year.
The company reported 6,619 million rupees of PAT last year.
The firm is the sole branded cigarette maker in the island.
CTC said smokers had helped the government raise 54 billion rupees in taxes to the state a 12 percent increase over the same period last year.
However the company says this was achieved despite a 10 percent volume drop in the domestic sales, driven pre-dominantly by challenging market conditions.
Sri Lanka Customs statistics indicate that Beedi volumes have grown by almost 200 percent over the past six years.
This growing preference can be attributed to Beedi remaining a cheap substitute to the cigarette smokers in Sri Lanka.
CTC said the growth in Beedi together with the prevalent drought conditions in some parts of the country and its impact on disposable income significantly contributed to the decline in cigarette volumes.
The company says export sales revenue increased by 145 million rupees.
“Although volumes in totality were lower than the same period last year, investments continued to infuse value in our mainstream brand John Player Gold Leaf with the successful implementation of the pack upgrade,” the company said in its interim financial statement.
“The Company will continue its endeavor to improve export performance into the future.” Gross revenues were marginally up to 64,162 million rupees in the September 2014 from 63,858 billion rupees a year earlier.
The accounts showed unspecified other operating costs falling to 2.1 billion rupees in 2014 from 1.9 billion a year earlier.
CTC said it is in the process of implementing pictorial health warnings in compliance with the deadlines set down by the Supreme Court ruling on 11 June 2014.
All cigarette packets manufactured by CTC from 1 January 2015 will carry pictorial warnings covering 60 percent of the front and back surfaces of the packs. All cigarette packets manufactured and issued before 1 January 2015 should be sold before 1 February 2015.
The firm reported earnings per share of 35.40 rupees for the 9 months ended September 2014.
The company reported 6,619 million rupees of PAT last year.
The firm is the sole branded cigarette maker in the island.
CTC said smokers had helped the government raise 54 billion rupees in taxes to the state a 12 percent increase over the same period last year.
However the company says this was achieved despite a 10 percent volume drop in the domestic sales, driven pre-dominantly by challenging market conditions.
Sri Lanka Customs statistics indicate that Beedi volumes have grown by almost 200 percent over the past six years.
This growing preference can be attributed to Beedi remaining a cheap substitute to the cigarette smokers in Sri Lanka.
CTC said the growth in Beedi together with the prevalent drought conditions in some parts of the country and its impact on disposable income significantly contributed to the decline in cigarette volumes.
The company says export sales revenue increased by 145 million rupees.
“Although volumes in totality were lower than the same period last year, investments continued to infuse value in our mainstream brand John Player Gold Leaf with the successful implementation of the pack upgrade,” the company said in its interim financial statement.
“The Company will continue its endeavor to improve export performance into the future.” Gross revenues were marginally up to 64,162 million rupees in the September 2014 from 63,858 billion rupees a year earlier.
The accounts showed unspecified other operating costs falling to 2.1 billion rupees in 2014 from 1.9 billion a year earlier.
CTC said it is in the process of implementing pictorial health warnings in compliance with the deadlines set down by the Supreme Court ruling on 11 June 2014.
All cigarette packets manufactured by CTC from 1 January 2015 will carry pictorial warnings covering 60 percent of the front and back surfaces of the packs. All cigarette packets manufactured and issued before 1 January 2015 should be sold before 1 February 2015.
The firm reported earnings per share of 35.40 rupees for the 9 months ended September 2014.
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