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Rubber, tea prices boost Kelani Valley sales

Mar. 30 (LBO) - Kelani Valley Plantations Ltd and its subsidiary companies have reported healthy increase in turnover for the financial year ended December 31, 2005 on the back of strong growth in tea and rubber production.

In its annual report for 2005 the company reported a 10 per cent increase in turnover to Rs 1.

918 billion from Rs 1.740 billion in 2004. Net assets of the company rose to Rs 2.576 billion from Rs 2.450 billion, an increase of 5 per cent.
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The increase in group turnover was attributed to a 5 per cent increase in tea turnover and a 27 per cent increase in rubber turnover, stemming from a 10 year high in rubber prices at the Colombo Auction. Total production in the tea and rubber sectors recorded healthy growths with tea production rising by 6 per cent. The estate crop grew by 4 per cent, registering improvements from all regions. Rubber production grew by 11 per cent reversing the decline seen since 2002. However, higher costs arising from increased wage rates and an unfavourable impact of indirect taxes, which amounted to Rs 47 million, resulted in reduced profitability for the year. The company reported a pre-tax profit of Rs 152 million for the year under review from Rs 218 million reported last year, a reduction of Rs 66 million or 30 per cent. Post-tax profit at Rs 152 million was down Rs 49 million or 24 per cent.
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