Lower Sri Lankan tea prices boost Finlays Colombo profit
ECONOMYNEXT – Lower tea prices have helped boost the bottom line of Finlays Colombo whose net profit shot up 91 percent to 116 million rupees in the June 2015 quarter from a year ago.
Sales fell 10 percent to 1.4 billion rupees during the period with earnings per share at 3.31 rupees, a stock exchange filing said.
Although tea export sales fell slightly to 2.2 billion rupees in the June 2015 quarter from the previous year, profits more than doubled to 131 million rupees, the accounts showed.
Profits from Finlays Colombo’s logistic business was stagnant at 70 million rupees while revenue fell. Profits from services rose slightly to 150 million rupees during the June 2015 quarter.
Finlays Colombo chairman Kumar Jayasuriya said tea prices fell sharply in the first half of the year because of problems in the main exports markets like Russia and the Middle East.
“Our own tea exports were relatively flat compared to the previous year in volume terms, but the reduction in tea prices resulted in turnover declining by 191 million rupees to 2.15 billion rupees,” he said in a statement.
“However, in contrast, the reduction in auctions prices helped to boost profits from tea exports as the input cost of raw material was much lower.”
The reduction in electricity tariffs helped reduce costs of the firm’s cold storage business. (Colombo/August 13 2015)