ECONOMYNEXT – Profits at Sri Lanka’s Ceylon Tobacco Company Plc, a unit of British American Tobacco grew 47 percent in the June 2018 quarter from a year earlier to 4.3 billion rupees helped by volume growth and a sharp fall in some operating expenses.
The firm reported earnings per share of 23.25 rupees per share.
Gross revenues grew 6.9 percent to 38.84 billion rupees in the June 2018 quarter with turnover taxes growing 7.4 percent to 20.17 billion rupees.
Net revenues grew 5.2 percent to 8.67 billion rupees.
Profits were helped by a fall in unspecified ‘other operating expenses’ to 858 million rupees from 1.40 billion rupees.
The company said volumes grew 6 percent from a year earlier.
The company claimed about 500 million cigarettes were being smuggled into Sri Lanka at a loss of 20 billion rupees a year in taxes, after tax hikes in recent year made smuggling more lucrative.
It is not clear how the 500 million stick estimate was arrived at.
Authorities had carried out 909 raids on illicit cigarettes, the firm said. (Colombo/Aug09/2018)