CTC sales, profit and revenue to Govt. recover in 3Q

Wednesday, 11 November 2020 00:14 - - {{hitsCtrl.values.hits}}

Ceylon Tobacco Company PLC (CTC) has reported a recovery in sales and profit in the third quarter in tandem with the reopening of the economy after the COVID-19-induced shutdown.

CTC said the company’s performance in the three months ended 30 September, show a healthy recovery reverting to nearly early 2020 pre-COVID-19 levels and posted a growth in sales volumes in comparison to the previous quarter of the year due to countrywide resumption of economic activities from mid-May onwards.

Consequently, the company’s turnover for the quarter grew by 26% to Rs. 44.6 billion and the Government revenue through Excise and other levies by 28% to Rs. 33.5 billion.

The company’s profit before income tax for the period recorded Rs. 8.5 billion, up from Rs. 7.5 billion a year earlier, while the company’s profit after tax for the three months ended 30 September reported as Rs. 4.9 billion, up from Rs. 4.5 billion a year earlier.

“The business recovery for the quarter is encouraging and the company is cautiously optimistic of the future in anticipation of the gradual revival of the economy and robust plans in place to drive productivity and efficiency improvements for the balance period of the year,” CTC said.

In the first nine months, turnover amounted to Rs. 103 billion, down from Rs. 15.7 billion. Government levies were Rs. 78.1 billion, down from Rs. 80 billion in the corresponding period of last year. Pre-tax profit was down from Rs. 22 billion to Rs. 19.4 billion and after tax profit declined from Rs. 13.2 billion to Rs. 12 billion.

CTC said effective management nationally of the global pandemic will be crucial and the company is committed towards the continuation of business activities subject to strict compliance with employee health and safety guidelines and other directions of the Government.

The Directors recommend a third interim dividend of Rs. 19 per share to be paid by 9 December.