Watawala Plantations PLC reported impressive results for the nine months ending 31 December 2009 with net profits increasing for the period to Rs.226 million from Rs.64 million the previous year and turnover also increasing by 34% to Rs.4.1 billion with ll segments recording strong top line growth.
Watawala Plantations Chairman G. Sathasivam stated in the interim financial reports that while the outlook for commodity prices remains broadly positive, the company is exploring various options to increase shareholder value in the longer term.
He said the company has bounced back from the global recession and the plantation sector wage hike due to a well thought out diversification strategy and remains confident of improving on the results.
Mr. Sathasivam said the palm oil segment recorded remarkable growth in profits during the period over last year as yields and prices have improved. Watawala Plantations has also started to refine crude palm oil to market its own bottled product called ‘Oliate’. Mr. Sathasivam added that a decline in export profit for the period under review is maily due to the absence of palm oil exports during the current period. Exports consisted of bulk tea exports to Tetley of UK and the export of value added tea to Australia.
Mr. Sathasivam said the tea segment’s performance improved remarkably despite the 40% wage hike over the previous period. The company’s concentration on sound agricultural practices continued to pay dividends as tea prices also remained high at the Colombo Tea Auction.
Rubber prices also stabilized at more remunerative levels although higher rainfall in the Udugama area restricted the number of tapping days. As a result, Mr. Sathasivam said Watawala Plantations was unable to fully capitalize on the enhanced prices. |
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