COLOMBO: Sri Lanka Ceylon Tobacco Company’s profit after tax (PAT) stood at Rs. 3.06 billion for the three months ended 31 March 2016, the company said in its Summary of Performance report.
Ceylon Tobacco Company’s contribution to the Government through its value chain during the first quarter of 2016, in the form of Excise Tax, Corporate Tax and other levies, increased by 20% over the same period last year to Rs. 25.6 billion, driven primarily by higher prices as a result of the Excise led price increase experienced in October 2015 and relatively stable volumes during the first 3 months of 2016.
Top line growth for the 3 months ended 31 March was spearheaded by mainstream and premium segments in the company’s brand portfolio.
CTC remains committed to investing in the Company’s key brands with a predominant focus on infusing value into the mainstream brand, John Player Gold Leaf. However, under regulated and low taxed products such as “Beedi” still remains a key threat to Government revenue from the tobacco industry.
Law enforcement agencies continued to effectively curtail the spread of unauthorized and illicit tobacco products. A total of 472 raids uncovered 2.3 million illegal cigarettes at a market value of Rs. 76 million during the first 3 months of 2016.
CTC’s flagship CSR initiative, the Sustainable Agricultural Development Programme (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 March 2016 stood at 18,464, comprising of 71,285 beneficiaries in 16 districts.
The Directors recommend a first interim dividend of Rs. 15.60 per share to be paid by the 30 May 2016.
