May 17, 2010 (LBO) – High rubber and palm oil prices helped Sri Lanka’s Agalawatte Plantations make a net profit of 36 million rupees in the March 2010 quarter compared with a loss of 68 million rupees the year before, latest accounts showed. Agalawatte Plantations’ tea business made a small gross profit of 1.9 million rupees compared with a loss of 13 million the year before. The company, part of the Mackwoods Plantations group, said in a stock exchange filing that sales for the quarter rose 93 percent to 568 million rupees from a year ago.
The bulk of profits came from a sharp increase in the contribution from its main rubber plantations business whose gross profit shot up to 101 million rupees in the March 2010 quarter from 27 million rupees the year before.
International rubber prices have stayed high in recent months with strong demand from auto manufacturers as the world economy recovers from recession.
Gross profits at Agalawatte Plantations’ palm oil plantations, a relatively new business, rose to 18 million rupees from a negligible profit the year before.
World palm oil prices have also stayed high in recent months with strong demand from Chin and India.