Sri Lanka BAT unit profits grow in Sept on revenue

ECONOMYNEXT- Net profits at Ceylon Tobacco Company (CTC), the Sri Lankan unit of British American Tobacco, for the September quarter grew 23.6 percent from a year earlier to 4.5 billion rupees on higher revenue, interim financials showed.

The interim accounts said CTC posted 24.09 rupees in earnings per share for the quarter. For the nine months ended in September, CTC posted 70.77 rupees in earnings per share.

CTC closed trading on Friday 39.90 rupees up at 1,120 rupees a share.

CTC posted a turnover of 35.3 billion rupees in the September quarter, up 6.6 percent from a year earlier.

However, sales volumes fell 11 percent due to higher excise duties, the firm said in an earnings release.

The firm paid 26.3 billion rupees in government levies, up marginally from a year earlier.

Revenue for the quarter was up 18.5 percent to 8.96 billion rupees, while raw material costs fell 9 percent to 547 million rupees.

CTC said a growth in beedi and smuggled cigarettes remains a threat to the firm’s turnover, and excise duty rises are increasing the gap between legal and illegal cigarettes.

Interest income for the quarter fell to 414 million rupees from 455 million rupees a year earlier.

The firm’s asset base grew to 29.6 billion rupees at the end of September from 28.2 billion rupees at end-December, due to a rise in cash and cash equivalents. (Colombo/Nov08/2019)