Sri Lanka’s Ceylon Tobacco 2Q net profit up 20.2 percent: Interim Report

July 29, 2015 (LBO) – Sri Lanka Ceylon Tobacco Company’s profit after tax up 20.2 percent to 3,019 million rupees in the quarter 30th June 2015 despite government excise and other taxes, interim report data showed.

Ceylon Tobacco Company is engaged in the manufacture, marketing and export of cigarettes which is a subsidiary of British American Tobacco.

The company says domestic volumes increased by 10 percent as at the 2nd quarter due to “higher level of consumer confidence and an increase in disposable income”.

Revenue grew 19.83 percent to 26,952 million rupees in the quater 30th June 2015 and net revenue increased 17 percent to 6,544 million rupees.

Profits before tax stood at 4,973 million rupees for the June quater 2015 compare to 4,219 million rupees recorded in the same period last year.

CTC reported earnings of 29.41 rupees per share on total profits of 5.5 billion rupees for the six months ended June 2015, up 21.4 percent from a year earlier.

Ceylon Tobacco said it has contributed 43.7 billion to the Government as excise and other taxes for the six months ended 30th June 2015 which is an increase of 18 percent in comparison to the same period last year.

“This was primarily driven by an excise led price increase experienced in October 2014 along with higher volumes during the first six months of 2015,” the interim report filed in Colombo Stock Exchange said.

“CTC remains committed to invest into our key brands and predominantly to infuse value in our main-stream brand John Player Gold Leaf.”

The Company complied with 60 percent Graphical Health Warning (GHW) in January 2015 and 80 percent Graphical Health Warning in March with the subsequent amendment to the law which totally cost 118 million rupees for the first six months.

The company also says the law enforcement agencies continued to effectively curtail the spread of unauthorized and illicit tobacco products and a total of 582 raids have yielded 6.3 million rupees illegal cigarettes at a market value of 189 million rupees, in the first six months of 2015.