Sri Lanka Bogawantalawa Plantations returns to profit

Oct 30, 2012 (LBO) – Sri Lanka’s Bogawantalawa Plantations, which has interests in tea and timber said it made profits of 88.9 million rupees in the September 2012 quarter recovering from a loss of 127 million rupees a year earlier. Last year’s losses were partly caused by steep increase in gratuity liability following an increase in wages. The firm had to provide 108 million rupees in the half year ending September 2011, against the 30.5 million rupees provided this year.

The firm reported earnings of 1.06 rupees per share. For the six months to September the firm reported earnings of 1.65 rupees on total profits of 138 million rupees in interim accounts filed with the Colombo Stock Exchange.

The firm said group revenues rose 33.5 percent to 868 million rupees in the September quarter, cost of sales rose at a much slower rate of 4.6 percent to 761.9 million rupees allowing gross profits to grow 34 percent to 106 million rupees.

The reported profits include so-called non-cash fair value gains on trees.

During the first half of the year the firm had 31.7 million rupees in to the profit and loss accounts as increase in the value of biological assets.