Kelani Valley Group records Rs 463 m net profit
The Kelani Valley Group posted a post tax profit of Rs 463 million in
2011 despite a sharp decline in the tea market at the end of the first
quarter, down turn in rubber prices in the latter half of the year and
impact of the wage increase in April, KVPL Chairman Mohan Pandithage
He said this is the highest amount since its inception.
The profit before tax includes a contribution of Rs 37 million from
Mabroc Teas which has been engaged in the export of value added products
and the brand promotion overseas for more than two decades. The company
recorded a turnover of Rs 6,110 m compared to Rs 3,880 m in the previous
Pandithage said 2011 has been a good year for KVPL and its
positioning as a preferred supplier to major buyers was reinforced with
all tea processing centres and 19 tea gardens.
The company has proposed a dividend of Rs 5 per share for the year.
The company was also able to translate an additional Rs 340 million
annually as a result of negotiating the plantation worker wage increase
without any disruption to work.
Meanwhile, KVPL improved its tea production by 10.1% over 2010 with
its high growns contributing 10.9% to the increased output.
Rubber prices rose steadily in all markets from the last quarter of
2010 up to the third quarter of 2011, with Latex Crepe peaking over US$
6 in June and RSS fetching equal value in February at the Colombo
The group revamped its operation during the year under review by
investing in new tea blending cleaning and packing machinery automating
and streamlining tea bag aging operations installing a new racking
system and an office complex to accommodate all operations under one
roof, he said.