Sri Lanka Tea Smallholder Factories returns to profitability in Sept quarter
ECONOMYNEXT – Tea Smallholder Factories, which makes black tea from leaves bought from Sri Lankan small farmers, returned to the black in the September 2016 quarter with a profit of Rs6.8 million compared with a loss of Rs12.8 million a year ago.
Sales rose 23% to Rs577 million, according to interim accounts filed with the stock exchange.
The company, in which John Keells Holdings has a 37.62 percent stake, reported earnings per share of 23 cents in the September quarter compared with a loss of 43 cents the year before.
Tea Smallholder Factories said profits improved sharply in the southern Galle low country district and in the hill country Nuwara Eliya district but losses increased in southern Matara while in the Ratnapura district it made a modest profit compared to a loss a year ago.
The other two main shareholders of the firm are Akbar Brothers Limited with 24.39 percent and Central Finance Company with 22.85 percent.
(COLOMBO, Oct 21, 2016)