Fags volume drops but Govt. earns Rs. 48.5 b from CTC in nine months
Monday, 11 November 2013 00:20
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Ceylon Tobacco Company (CTC) has contributed Rs. 48.5 billion to Government revenue in the first nine months of 2013, which is Rs. 700 million higher than same period last year.
“This was achieved despite an 11% volume drop, in the backdrop of dampened consumer confidence,” CTC said.
The company’s profit after tax stood at Rs. 6.6 billion, driven by the marginally higher revenue, better mix and higher net interest income.
While the total volume was down, the premium brand Dunhill grew by 9% vs. same period last year, led by its innovative variant Dunhill SWITCH. Export sales revenue stood at Rs. 47.6 million for the first nine months of 2013.
The law enforcement agencies continued to effectively curtail the spread of unauthorized and illicit tobacco products. In the first nine months of 2013, a total of 709 raids have yielded 45.7 million illegal sticks at a market value of Rs. 1.28 billion.
CTC’s flagship CSR initiative, SADP (Sustainable Agricultural Development Program) focused on supporting 2,400 active farmers in Kilinochchi, Kandy, Anuradhapura, Matara and Hambantota Districts in the third quarter of 2013 and 400 new farmer families were recruited in Balapitiya and Weligama during the quarter.
The CTC Distributor Association donated Rs. 3.5 m to the SADP program for sponsoring 100 families for two-and-a-half years from the south. SADP continues its journey of alleviating poverty, supporting a total number of 16,364 families, totalling 62,442 beneficiaries in 16 districts in Sri Lanka.
CTC has challenged the Regulations published by Minister of Health to implement, among other things, pictorial health warning covering 80% of the cigarette packs. The implementation of the Regulations has been stayed pursuant to an interim order issued by the Supreme Court. Supreme Court has fixed the hearing of the appeal for 7 May 2014. Hearing of the CTC’s substantive petition challenging the Regulations in the Court of Appeal has been fixed for 17 January 2014.
The CTC Board of Directors has recommended a third interim dividend of Rs. 12.40 per share to be paid by 27 November 2013.
