Sri Lanka Horana Plantations Dec net up on high tea prices

Feb 02, 2010 (LBO) – High tea prices helped Sri Lanka’s Horana Plantations to make a profit of 75 million rupees in the December, according to accounts filed with the stock exchange. Horana Plantations said the wage deal was effective from April 2009 and that wage arrears amounting to 68.05 million rupees has been recognised for the period in the accounts.

An increase in gratuity provision of about 34.75 million rupees will be charged for the period January 2010 to March 2010, the company said.

Several plantations companies made losses after the 40 percent wage hike last year. The firm, which is managed by the Ceylon Theatres group, had made a 30 million rupee loss in the same period a year ago.

Horana Plantations said sales in the December 2009 quarter rose 74 percent to 531 million rupees.

Earnings per share were three rupees compared with a loss of 1.20 rupees a year ago.

In the nine months to December 31, 2009, the company said net profit rose 34 percent to 38 million rupees with sales up 16 percent to 1.3 billion rupees.

Revenue from tea rose 22 percent to just over a billion rupees while revenue from rubber was stagnant at 246 million rupees.