Poor earnings forecast for Sri Lanka plantations firms
Oct 22, 2015 06:18 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Sri Lankan plantations companies are expected to have another poor earnings quarter with commodity prices still low, stock brokers said.
Regional plantations companies collectively lost four billion rupees in the 2014 financial year owing to the slump in commodity prices and high costs.
The island’s contraction in exports is expected to continue in the September quarter with demand weak in key export markets like Russia and the Middle East, Sampath Securities said.
“We expect the trend in contraction of tea exports in July with a 14.0 percent decline year-on-year and 22.8 percent year-on-year decline in August to continue in September, they said in an earnings forecast note to clients.
“Since tea is the primary cultivation in all of the plantations, we do not expect any of the plantation companies to report reasonably exceptional results during the quarter ended September.”(Colombo/October 22 2015)