MARKET DEVELOPMENT
Watawala Posts Rs 409M PAT For 1H
Watawala Posts Rs 409M PAT For 1H
27/01/2015 (Ceylon Daily News) - Watawala Plantations reported revenues of Rs 5.3bn for the nine months ended December 31, 2014 , up 16.6% YoY. Net profit or PAT for nine months amounted to Rs 409m, against Rs 311m in the same period last year.
Watawala was able to post strong bottom line performance in a challenging environment for the plantation sector due to better than expected performance in Palm Oil.
Profit for the third quarter (3QFY15) amounted to Rs 147m, down 30.9% YoY due to challenges in the tea sector which was adversely affected by heavy rains.
Palm Oil contributed Rs 593m to the group bottom line in 9MFY15 which helped Watawala to cover its losses in the tea and rubber sectors.
Profit for 3QFY15 alone amounted to Rs 172m, agrowth of 23.2% YoY. Revenue for 9MFY15 amounted to Rs 1.2bn, up 9.1% YoY. The growth in revenue is attributed to 6.3% YoY increase in crop which amounted to 6.94m kg and a19.9% YoY increase in NSA. Tea segment, the largest revenue contributor which accounted for over 67.9% of the total revenue, increased 22.4% YoY to Rs.6 billion, mainly on the back of improved volumes. Instability in key export markets such as CIS, and the Middle East has put pressure on auction prices.
Watawala was able to post strong bottom line performance in a challenging environment for the plantation sector due to better than expected performance in Palm Oil.
Profit for the third quarter (3QFY15) amounted to Rs 147m, down 30.9% YoY due to challenges in the tea sector which was adversely affected by heavy rains.
Palm Oil contributed Rs 593m to the group bottom line in 9MFY15 which helped Watawala to cover its losses in the tea and rubber sectors.
Profit for 3QFY15 alone amounted to Rs 172m, agrowth of 23.2% YoY. Revenue for 9MFY15 amounted to Rs 1.2bn, up 9.1% YoY. The growth in revenue is attributed to 6.3% YoY increase in crop which amounted to 6.94m kg and a19.9% YoY increase in NSA. Tea segment, the largest revenue contributor which accounted for over 67.9% of the total revenue, increased 22.4% YoY to Rs.6 billion, mainly on the back of improved volumes. Instability in key export markets such as CIS, and the Middle East has put pressure on auction prices.