Sri Lanka Kelani Valley Plantations June net down 82-pct

Aug 04, 2010 (LBO) – Sri Lanka’s Kelani Valley Plantations net profit for the June 2010 quarter fell 82 percent to seven million rupees from a year ago as costs shot up and tea prices fell, a stock exchange filing said. Sales of the firm which grows tea and rubber and is a subsidiary of rubber gloves maker Dipped Products, part of the Hayleys group, rose 35 percent to 913 million rupees.

Basic earnings per share fell to 0.22 rupees from 1.21 rupees the previous year.

Costs in the June 2010 quarter rose 41 percent to 818 million rupees from a year ago with gross profit flat at 94.5 million rupees.

In the six months to June 2010 Kelani Valley Plantations net profit grew to 119.4 million rupees from a loss of 4.8 million for the first half of 2009.

Group gross profit from tea doubled in the six months to 101 million rupees while gross profit from rubber surged to 144 million from 29 million rupees the previous year.

A Kelani Valley Plantations statement said the group was recovering from losses of 2009.

“The surge in rubber prices and higher crop volumes in tea have generated significant growth for Kelani Valley Plantations (KVPL) in the six months ending 30th June 2010.”

KVPL Managing