Ceylon Tobacco Company Plc (CTC) has ended the 2013 financial year with a 6% dip in volumes but the Government enjoyed an increase in revenue by Rs. 5.4 billion to a record Rs. 76.5 billion.
“2013 was yet another challenging year,” CTC said. “Despite the volume decline, the company was able to increase its contribution to Government revenue to Rs. 76.5 billion (Excise, Income Tax & other levies), up by Rs. 5.4 billion over the previous year,” it added.
While the market leader John Player Gold Leaf volume was down by 6%, Dunhill, the premium brand, recorded a 13% growth driven by its innovative variant Dunhill SWITCH, which now accounts for circa 61% of the Dunhill business. Exports revenue increased by 22%, from Rs. 128 million to Rs. 156 million.
* In 2013, a total of 1,635 raids have yielded 50.4 million illegal sticks at a market value over Rs.1.3 billion.
* CTC’s after tax profit up 12% to Rs. 9.1 b; 2013 dividend up 8% to Rs. 48.75 per share
“The company will continue its efforts to improve export performance in future as well,” CTC said.
It said untiring efforts of the law enforcement agencies have effectually limited the spread of unauthorised and illicit tobacco products. In 2013, a total of 1,635 raids have yielded 50.4 million illegal sticks at a market value over Rs.1.3 billion.
CTC’s Profit After Tax for 2013 closed at Rs. 9.1 billion (up from Rs. 8.1 billion or 12%), driven largely by higher revenue and better mix.
The Directors have recommended a final dividend of Rs. 8.55 per share less tax for 2013.
The final dividend is subject to the approval of the shareholders at the Annual General Meeting to be held on the 2 April. Once approved by the shareholders, the final dividend will be payable on the 11 April. Four interim dividends totalling Rs. 40.20 less tax have been declared and paid for the year 2013. This makes total dividend of Rs. 48.75 per share for 2013. In 2012 the total dividend was Rs. 45.15 per share.
Commenting on ongoing litigation, CTC said it has challenged the Regulations published by the Minister of Health to implement, among other things, pictorial health warnings covering 80% of the cigarette packs. The implementation of the Regulations has been stayed pursuant to an interim order made by the Supreme Court.
The Supreme Court has now fixed the hearing of the appeal for 7 May. “Hearing of the CTC’s substantive petition challenging the Regulations is pending before the Court of Appeal,” it added.
CTC also said its flagship CSR initiative, SADP (Sustainable Agricultural Development Program), focused on supporting 2,400 active farmers in the Districts of Kilinochchi, Kandy, Anuradhapura, Matara and Hambantota Districts in the fourth quarter of 2013.
SADP Mega Plant Nursery in Sooriyawewa was inaugurated on 4 November 2013. SADP was recognised by the Ceylon Chamber of Commerce for ‘Best Environmental Value Addition Project’ at the Best Corporate Citizen Awards 2013. SADP continues its voyage of alleviating poverty, having supported a total number of 16,364 families totalling to 62,442 beneficiaries in 16 districts in Sri Lanka to date.
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“2013 was yet another challenging year,” CTC said. “Despite the volume decline, the company was able to increase its contribution to Government revenue to Rs. 76.5 billion (Excise, Income Tax & other levies), up by Rs. 5.4 billion over the previous year,” it added.
While the market leader John Player Gold Leaf volume was down by 6%, Dunhill, the premium brand, recorded a 13% growth driven by its innovative variant Dunhill SWITCH, which now accounts for circa 61% of the Dunhill business. Exports revenue increased by 22%, from Rs. 128 million to Rs. 156 million.
* In 2013, a total of 1,635 raids have yielded 50.4 million illegal sticks at a market value over Rs.1.3 billion.
* CTC’s after tax profit up 12% to Rs. 9.1 b; 2013 dividend up 8% to Rs. 48.75 per share
“The company will continue its efforts to improve export performance in future as well,” CTC said.
It said untiring efforts of the law enforcement agencies have effectually limited the spread of unauthorised and illicit tobacco products. In 2013, a total of 1,635 raids have yielded 50.4 million illegal sticks at a market value over Rs.1.3 billion.
CTC’s Profit After Tax for 2013 closed at Rs. 9.1 billion (up from Rs. 8.1 billion or 12%), driven largely by higher revenue and better mix.
The Directors have recommended a final dividend of Rs. 8.55 per share less tax for 2013.
The final dividend is subject to the approval of the shareholders at the Annual General Meeting to be held on the 2 April. Once approved by the shareholders, the final dividend will be payable on the 11 April. Four interim dividends totalling Rs. 40.20 less tax have been declared and paid for the year 2013. This makes total dividend of Rs. 48.75 per share for 2013. In 2012 the total dividend was Rs. 45.15 per share.
Commenting on ongoing litigation, CTC said it has challenged the Regulations published by the Minister of Health to implement, among other things, pictorial health warnings covering 80% of the cigarette packs. The implementation of the Regulations has been stayed pursuant to an interim order made by the Supreme Court.
The Supreme Court has now fixed the hearing of the appeal for 7 May. “Hearing of the CTC’s substantive petition challenging the Regulations is pending before the Court of Appeal,” it added.
CTC also said its flagship CSR initiative, SADP (Sustainable Agricultural Development Program), focused on supporting 2,400 active farmers in the Districts of Kilinochchi, Kandy, Anuradhapura, Matara and Hambantota Districts in the fourth quarter of 2013.
SADP Mega Plant Nursery in Sooriyawewa was inaugurated on 4 November 2013. SADP was recognised by the Ceylon Chamber of Commerce for ‘Best Environmental Value Addition Project’ at the Best Corporate Citizen Awards 2013. SADP continues its voyage of alleviating poverty, having supported a total number of 16,364 families totalling to 62,442 beneficiaries in 16 districts in Sri Lanka to date.
www.ft.lk
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