Talawakelle Tea Estates records year of ‘high earnings’

‘This year, the turnover of the Group was Rs. 4.7 billion which is an increase of 30.5 percent over that of the previous year, chairman of Talawakelle Tea Estates PLC Mohan Pandithage stated presenting the Annual Report and the Audited Financial Statements of the company for the year ended at March 31.

Pandithage also stated that the Group’s net profit after tax stands at Rs. 267.4 million and that the Group was able to secure their position at the top for having the best tea prices at the Colombo Tea Auction which was held among the Regional Plantation Companies.

‘I am privileged to announce that even among many challenges, both locally and globally, the company has been able to record yet another year which has yielded nothing short of success. During the financial year 2014/15 the company posted yet another year of high earnings on record, he said.

According to the annual report of Talawakelle Tea Estates PLC, the company’s turnover for the year under review surged to Rs. 4.6 billion and was able to achieve its highest net profit after tax of Rs. 228.2 million. And on a consolidated basis, the turnover of the group was Rs.4.7 billion, accordingly, the group’s profit after tax has amounted to Rs. 267.4 million.

The Group chairman highlighted that the pillars behind the company’s growing success come down to focusing on strategic imperatives, upholding quality and consistency of the tea produced, reduced borrowings and cost management.

Pandithage also states that the company has produced 338 million kilograms of tea within the financial year and that stands in level with the previous year’s 340 million kilograms. Meanwhile, the company boasts that their total income through tea exports have recorded a growth of Rs.13.5 billion vis-à-vis Rs. 199.4 billion in 2013. The above recorded export figures are equivalent to US $1.63 billion.

The Group also announced that two subsidiaries which are in the hydro-power sector have recorded a profit after tax of Rs. 39.2 million in comparison to Rs. 41.1 million which was recorded last year.

Opening up about one of the aforementioned ‘global challenges’ the company had to face during the year, Pandithage iterated that East European and Middle East countries which are recognized as the largest buyers of Sri Lankan tea were subjected to civil unrest and financial instability. He maintained that even though this situation has a direct impact on the local tea export industry, the company was able to pull through quite comfortably.

‘The challenge in the coming year ahead is to navigate an operating environment confronted by volatile commodity markets, instability in tea exports, climate change and the wage increase with effect from April 2015, the chairman said while adding the final remarks.

Courtesy: The Island 16 June 2015