Thursday 25 May 2017

Sri Lanka Watawala Plantations March quarter net profit up 168-pct

ECONOMYNEXT - Sri Lanka’s Watawala Plantations said net profit rose 168% to Rs212 million in the March 2017 quarter from a year ago with its tea business returning to profit and despite a sharp fall in palm oil earnings.

Sales of the group rose 5% to Rs1.8 billion over the period, according to interim accounts filed with the stock exchange.

Quarterly earnings per share were 89 cents compared with 32 cents a year ago. The stock last traded at Rs33.60.

The accounts showed Watawala Plantations’ tea business returned to profit in the March 2017 quarter while there was a sharp fall in palm oil profit.

“The palm oil segment profitability was below the expectations as the government reduced the duty on palm oil by Rs 40/- in 4QFY17,” said Watawala Plantations Managing Director Vish Govindasamy.

In the year to March 2017, EPS was Rs5.18 with net profit up 137% to Rs1.2 billion which Govindasamy said was Watawala’s highest ever profit “on the back of the increased performance in oil palm and tea segment.”

Palm oil continued to be the highest contributor to the company’s annual profitability, mainly because of the increased crop and higher Net Sale Average achieved during the year, he said.

Watawala Plantations achieved the highest profitability by any regional plantations company since privatization, he said.

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