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| Thursday, 12 February 2004 |
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CTC records 10% growth in profit By Sudarshana Perera Ceylon Tobacco Company Ltd (CTC) has recorded a trading profit of Rs. 1,394 million for the last financial year. According to statistics released by the CTC, the current profit represents a 10 % growth in comparison to the financial year ended December 31, 2002. The total revenue for the last year was Rs 30.1 billion from which CTC has contributed Rs 25 billion as excise and sales related taxes to the government. The profit after tax of Rs 957 million has grown by 13 % which has resulted in Earnings Per Share of Rs. 5.10. The sales volume has declined marginally. The company attributed maintaining cost effective measures below inflation, operational excellence of the management, consumer focus strategies for quality products and corporate responsibilities for the social welfare as the key factors towards the growth. Finance Director of Ceylon Tobacco Company (CTC) Maurice Tsangaris in an interview with the Daily News said that his company within top companies listed at the Colombo Stock Exchange (CSE) has focussed its business strategies to deliver a reasonable return to its shareholders. "The management effort of CTC to maintain costs below inflation, consumer focus strategies while offering quality products and social welfare measures have allowed us for profitability" said Tsangaris. "We will continue to promote our products in an ethical manner coupled with social responsibilities", he said. Although profit after tax has grown from 2002 , CTC has not regained the profitability levels of those achieved in 1999. The company says that high incidence of excise representing 80% of the retail sales price of a cigarette and growth of unauthorised and illicit products are disturbing factors. The CTC's contribution of Rs 25 billion as tax to the government, they say is the highest in the world paid by a tobacco based company and it constitutes and estimated 10% of the government's total tax revenue for the year 2003. |
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