CTC turnover tops Rs. 100 b; Govt. revenue from fags exceeds Rs. 91 b

Tuesday, 23 February 2016 00:04 - - {{hitsCtrl.values.hits}}

Ceylon Tobacco Company Plc’s turnover has topped the RS. 100 billion mark for the first time in 2015 with Government revenue exceeding Rs. 91 billion.

Gross revenue in the financial year ended 31 December 2015 rose by 21% to Rs. 106.5 billion. CTC said this was primarily driven by excise led price increases in October 2014 and October 2015, coupled with recovery in volumes during 2015 driven by mainstream and premium segments.

CTC also said it contributed Rs. 91.6 billion to the Government, in the form of taxes and levies, during the twelve months ended 31 December 2015. This included Super Gains Tax of Rs. 3.8 billion paid during the last quarter of 2015. Including Super Gains Tax, the Company’s total contribution to Government revenue increased by 24% from Rs. 73.6 billion compared to the previous year.

Excise special provision tax alone amounted to Rs. 80.4 billion, up from Rs. 58 billion in the previous year. Net revenue rose by 20% to Rs. 26.1 billion.

However, CTC said under regulated and low taxed products such as “Beedi” still remain a key threat to Government revenue contribution from the tobacco industry.

CTC said it remains committed to investing in the Company’s key brands with a predominant focus on infusing value into the main-stream brand, John Player Gold Leaf.

Law enforcement agencies continued to effectively curtail the spread of unauthorised and illicit tobacco products. In the twelve months of 2015, a total of 1,819 raids have uncovered 21.6 million illegal cigarettes at a market value of Rs. 648 million.

The Company’s Profit after Tax stood at Rs. 10.6 billion in 2015, up by 23% over 2014.

The Directors recommend a final dividend of Rs. 3.70 per share for 2015. The final dividend is subject to the approval of the shareholders at the Annual General Meeting to be held on the 31st March. Once approved by the shareholders, the final dividend will be payable on the 11 April.

CTC’s flagship CSR initiative, the Sustainable Agricultural Development Program (SADP) continued to focus on alleviating poverty and empowering the livelihoods of families in rural Sri Lanka. The total number of families supported by the Company as at December 2015 stood at 18,064, comprising of 69,676 beneficiaries in 16 districts.