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| Monday, 26 April 2004 |
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Agalawatte Plantations pre-tax profit increases to Rs. 52 million from Rs. 4 m in 2002 Agalawatte Plantations (Pvt) Ltd, a member of the Mackwoods Group has recorded a Rs. 52 million profit before tax for the year 2003 compared to a profit of Rs. 4 million in 2002. The company attributes improved rubber prices, the manufacturing of quality products in both tea and rubber, productivity gains and strict control of expenses as contributory factors for the growth in profit. The company's tea turnover has increased by 5% to Rs. 513 million with the production increase offsetting the marginal decline in the NSAs. With improved revenue from both rubber and tea, the overall company turnover has grown to a record of Rs. 929, a 23% increase over 2002. It also highlighted that the wage increase granted last year and the increases in key input costs impacted on profitability negatively. The firm has proposed a transfer to reserve Rs. 20 million and recommended a first and final dividend of 7.5% for approval of the shareholders at the AGM. Chairperson, Agalawatte Plantations Ltd, Mrs. N.S.O. Nonis in her review on the annual performance said Agalawatte Plantations adopted prudent financial management and consistent policies prioritising investments in field and factory development to achieve short term and long term results. Mrs. Nonis said that the company's rubber turnover increased by 55% in 2003 to Rs. 423 million aided by much improved prices and manufacturing standards, but production declined marginally by 1% to 3.66 million kg due to unfavourable weather conditions. Contrary to the national trend, the company's tea production improved by 5% to 3.54 million kg with all three segments such as High Grown, Low Grown, and Bought Tea recording improvements. She said that the implementation of the development program continued to receive priority in-spite of the absence of anticipated long term funding with Rs. 111 million being incurred as capital expenditure during the year. Of this amount the investment in oil palm cultivation and upkeep amounted to Rs. 55 million while the balance was incurred for replanting and upkeep of the tea and rubber and development of factories and infrastructure facilities. "The company's efforts at brand promotion and promoting Ceylon Tea as a niche market rather than a simple commodity in the European market continued during the year with several successful tea promotional events in the UK and Europe. Comprehensive programs such as construction of new self-help housing units, water schemes and toilets were carried out to enhance human resources", she said. She said that year 2004 would see the first harvest from the company's oil palm cultivation but the initial crops would be small. She also urged the authorities to urgently address the impediments that have delayed the availability of funding under the ADB assisted Plantation Development Project. With the privatisation of plantations, Mackwoods Group acquired the controlling interest in Agalawatte Plantations Ltd in 1995. (SP) |
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