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Kelani Valley
Plantations PLC (KVPL), the Hayleys Group’s plantation company,
has reported a turnover of Rs 1.2 billion for the six months
ending June 30, 2007, achieving a marginal improvement over the
corresponding half of 2006 despite a significant loss of tea
crop particularly in the first quarter of the year.
A nominal increase in rubber production and a 14 per cent
improvement in average net sales prices resulted in revenue from
rubber growing 18 per cent to Rs 481 million. This supported by
a 32 per cent increase in the average sales price for tea,
enabled the company to post what its Managing Director Kavi
Seneviratne describes as a satisfactory performance in the
circumstances.
The first quarter of KVPL witnessed a loss of about a third of
the company’s tea production as a result of a 30-day go slow and
strike by plantation workers in late 2006. Mr. Seneviratne
disclosed that, the adverse impact of this crop loss was
compounded by a wage increase and a sharp rise in fertilizer
cost in the period under review.
As a result of these factors, KVPL’s profit before tax of Rs 143
million was down by 26 per cent over the first half of 2006,
while post-tax profit declined by 29 per cent to Rs 132 million.
Notwithstanding these setbacks, the company remains confident
that the prevailing prices of tea and rubber will help to partly
offset the factors that impacted on first half performance by
the year’s end, Mr. Seneviratne said.
Among the highlights of the first half of 2007 was the
recognition accorded to KVPL by the United Nations Global
Compact (UNGC) for its groundbreaking initiative to combine
advocacy of UNGC principles and branding through its packaging,
and the launch of the world’s first range of ‘ethical teas.’ The
company also completed the certification of all its black tea
producing factories as compliant with HACCP, ISO 22000:2005 and
TASL-SGS standards, ensuring that the teas they manufacture meet
the highest required international food safety standards.
KVPL is owned and managed by Dipped Products PLC, the Hayleys
Group’s globally significant rubber glove manufacturing company.
The Board of Directors of Kelani Valley Plantations PLC
comprises Messrs N. G. Wickremeratne (Chairman), J A G
Anandarajah, R W Soysa, G K Seneviratne (Managing Director), Dr
W S E Fernando, B. P. W. Jayasekera and A. M. Pandithage
(Alternate R A Ebell).
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