Sri Lanka’s Watawala Plantations in profits with palm oil

May 23, 2013 (LBO) – Sri Lanka’s Watawala Plantations Plc reported profits of 124 million rupees in the March 2013 quarter down 54 percent from a year earlier, as commodity prices eased, with palm oil continuing to perform well. The firm reported earnings of 53 cents per share for the quarter, in accounts filed with the Colombo Stock Exchange.

It reported earnings of 2.87 rupees per share for the year to March 2013 on total profits of 680 million rupees, up 49 percent from 455 million rupees a year earlier.

In the March quarter revenues rose 31 percent to 1.63 billion rupees, cost of sales rose at a faster 36 percent to 1.48 billion rupees, shrinking gross profits 5 percent to 167 million rupees.

In the full year, revenues rose 28 percent to 5.3 billion rupees, cost of sales rose at a slow 14 percent expanding gross profits 165 percent to 1.04 billion rupees.

Managing director Vish Govindasamy said the company’s tea production improved 7.5 percent despite a drought.

“Improved agronomical practices implemented by the company, now appear
to be showing good results,” he said.

Tea had brought profits of 66 million rupees against a loss of 408 million rupees a year earlier.

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