Sri Lanka’s Talawakale Tea profits in the red

Aug 06, 2013 (LBO) – Sri Lanka’s Talawakele Tea Estates Plc said it made a loss of 3.0 million rupees in the June 2013 quarter down from a profit of 26 million rupee a year earlier. The firm reported a loss of 13 cents per share. In the six months to June the firm reported earnings of 3.47 rupees per share on total profits of 82.3 million rupees helped by a strong first quarter.

The stock closed at 22.80 rupees Monday.

The firm said revenues rose 19 percent to 919 million in the June 2013 quarter from a year earlier but direct costs rose at a faster 25 percent to 873 million rupees, shrinking gross profits to 41 percent to 45.6 million rupees.

Other income and gains rose 64 percent to 12.1 million rupees.

Sri Lanka’s tea farms have been hit by higher wages following a new agreement with unions and weaker production due to higher rainfall.

The firm gets most of its revenues from tea and has a small volume of rubber.