Lanka Walltile profits soar

PROFITS: Lanka Walltile Limited and its wholly owned subsidiary Lanka Walltile Meepe (Pvt) Limited showed strong performance in growth for the nine month period from April to December 2005.

Sales turnover increased from Rs. 988 million in 2004 to Rs. 1.10 billion, a 12 per cent growth whilst operational profit soared from Rs. 84.6 million for the same period last year, to Rs. 131.8 million this year, a 56 per cent increase. All figures are prior to audit.

Profit before tax was Rs. 168.7 million as against Rs. 102 million in the previous nine month period, a 65 per cent increase.

After tax profit was Rs. 120.9 million as against 82.9 million as at December 31, 2004 a 46 per cent increase.

Exports for the period under review show a marginal drop from the previous period of Rs. 468.5 million to Rs. 446.9 million whilst local sales picked up 26 per cent over the last year from Rs. 519.6 million to Rs. 656.8 million as at December 31, 2005.

The increasing popularity of the colours and designs produced, and the high quality of their wall tiles, was the contributing factors toward this increased performance by the company this year.

The company is confident that given the current market conditions the next three months of this financial year should be good for sales.

"We are extremely hopeful that peace will ultimately prevail in the country and that the economy will grow and with that the demand for our products will also keep growing and if this should happen the company will experience a record year in turnover and profits," said Managing Director of the Company Lucky de Chickera. He also added that there is a good possibility of a planned expansion for the production facility at Meepe within the next year, should peace prevail, he said.

"Our other concerns are about the dwindling ball clay (as opposed to red clay) deposits in the country and the rising energy costs to unprecedented levels, which is creating a spiralling effect on costs in other areas of operation as well."

"Whilst our Meepe operation is doing extremely well due to the popularity of its tiles, we do have concern about the field tile sales produced by our Balangoda factory, particulary in the local market.