Sri Lanka bought leaf tea factory net down 68-pct

Nov 07, 2011 (LBO) - Profits at Tea Smallholder Factories Plc, a unit of Sri Lanka's John Keells Holdings fell 68 percent to 8.



3 million rupees in the September 2011 quarter from a year earlier, amid falling revenues.

Tea Smallholder Factories Ltd is 37.6 percent owned by John Keells Holdings, 24.



3 percent by Akbar Brothers and 22.8 percent by Central Finance.

The firm reported earnings of 28 cents for the quarter.

For the six months to September there was a marginal loss of 825,000 rupees and loss per share of 3 cents.

The firm said revenues fell 20 percent to 481 million rupees in the September quarter. Gross profits were down a steep 57 percent to 29.

5 million rupees.

Green leaf bought from smallholders is paid on a formula based on the selling price of made tea.

When tea prices are on a declining trend, bought leaf factories get hit to due to lag effect.