Lankapage Logo CP 18 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka's Ceylon Tobacco Company Profit After Tax Rs. 12.56 billion in 2016
Tue, Feb 28, 2017, 10:53 am SL Time, ColomboPage News Desk, Sri Lanka.

Feb 28, Colombo: Sri Lanka Ceylon Tobacco Company's profit after tax (PAT) stood at Rs. 12.56 billion for the twelve months ended 31 December 2016, the company said in its Summary of Performance report.

Ceylon Tobacco Company contributed Rs. 87.4 billion to the Government through Excise Tax for the year ended 31st December 2016 driven primarily by relatively stable volumes during the first 9 months of the year.

The significant price hikes in the 4th quarter due to both an excise tax increase in October and the introduction of 15% VAT in November, caused volumes to halve and government revenue through excise to decline by Rs. 13.2 billion compared to the 3rd quarter of the year. It is anticipated that these price hikes will continue to impact both CTC volumes and government revenue during 2017. As a result of the business impact, the company closed 2 leaf depots and reduced factory shifts by a third, in early 2017.

There was a significant increase in overhead expenditure in 2016 compared with the previous year partly due to the constructive liabilities and obligations on behalf of key business partners in the value chain, which have been provided for. Secondly, there has been an increase in marketing investment to strengthen the value proposition of key brands and route to market infrastructure as well as increased legal expenditure due to the increased levels of unfair enforcements in the market and tobacco regulation which pose a greater challenge to the business considering the recent price hikes.

Raw material costs increased by 10% through the rise in imported tobacco leaf required as a consequence of continued adverse weather conditions experienced in certain parts of the country significantly impacting agricultural crops in addition to farmers being pressured to stop cultivating tobacco.

Law enforcement agencies continued to work towards curtailing the spread of unauthorized and illicit tobacco products. A total of 1,842 raids have been conducted during 2016. However, under-regulated and low taxed products such as "Beedi" still remain a key threat to Government revenue from the tobacco industry, which has only exacerbated given the widening price gap between the cheapest legally manufactured cigarette (Capstan) and Beedi.

 


ColomboPage - Recent 10 Stories ::
Mahindra & Mahindra inaugurates first automotive assembly plant in Sri Lanka
-- [20 minutes ago]
Eight suspects arrested over the Madampitiya double murder
-- [8 hours ago]
Enterprise 'Sonduru Piyasa' loan scheme grants over Rs. 5 billion to beneficiaries
-- [9 hours ago]
Government to provide paddy driers to farmers to increase their earning potential
oDoc expands to 10th factory, signs first Indian client for employee telemedicine coverage
Central Bank releases annual 'Economic and Social Statistics of Sri Lanka - 2019' publication
CCD ordered to investigate two complaints against Gotabhaya regarding a new passport
Sri Lanka commences preliminary work on light rail project
PM emphasizes taking steps to resolve drinking water problem in Jaffna
Sri Lanka Army returns 23 more acres of land in Kilinochchi to owners

Copyright © 2000, 2016 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.