Lanka Walltile group profits increase by 65 %

Lanka Walltile Limited (LWL)’s group profit attributable to shareholders in 1999/2000 had risen by 65% to reach Rs.101.3 million, compared to the previous year’s profit of Rs.61.6 million.

The LWL’s annual report for 1999/2000 released recently said that the company’s total sales had risen by 11.6%. The Lanka Walltile Group’s turnover had risen this year to Rs.2,368,695,000/-, compared to last year’s turnover recorded at Rs.2,140,364,000/-, the report said.

It said that the sale of tiles and associated items had increased by 9.38% this year compared to the previous year.

Meanwhile, Lanka Walltile Group’s plantations products had recorded an increase of 9.08%, while the packaging materials, while the revenue from packaging materials had also risen by 48.26%.

The company reported that LWL’s earnings per share had increased to Rs 3.62 at the End of March this year, from Rs.2.09 in same day the pervious year.

The shares of LWL traded at Rs.8.50 at December 11, 2000. The price of Lanka Tiles Limited were higher and traded at Rs.18/-.

Chairman, Lanka Walltile Limited, B.Mahadeva, has told shareholders that walltile exports to many developed countries such as UK, USA, Canada, and Australia increased substantially in the year under review. He said that in future, tiles would be exported to European countries as well.

Though sales to the western countries had increased, export to Singapore has declined by 41%, mainly due to the Asian recession, Mr.Mahadeva said. He, however, said that the market in Singapore was now recovering.

Mr.Mahadeva has explained that Lanka Walltile Limited, is the controlling company belonging to the Lanka Walltile Group. The group consists of three sets of companies. The first set of companies are comprised of the parent company, Lanka Walltile Limited (LWL) and its wholly-owned subsidiary, Lanka Walltile Meepe Limited (LWML), both of which produce and sell ceramic walltiles.

LWML, ceased to be a BOI company in 1998, in order to cater to the local market without restrictions.

Both LWL and LWML remained closed integrated, with LWL handling all exports of tile products, jointly produced by the two companies jointly.

Lanka Walltile has said it has not neglected the local market, while expanding its export market.

LWL said it has appointed a networks of dealers in different parts of the country to handle local tile sales

The total turnover of the two companies, LWL and LWML, had increased to Rs.957 million this year compared to a turnover of Rs.892 million, recorded in 1998/1999.

But the joint profit of the two companies had declined to Rs.50.9 million this year compared to the pervious year.

According to Mr.Mahadeva, one of LWL’s subsidiaries, Ceyexxe Plantations Limited, which had not paid a dividend this year, had contributed by way of dividends in 1998/1999. He said that if all dividends received by Lanka Walltiles are excluded, then the combined profit of LWL and LWML is higher.

The second set of companies in Lanka Walltile Group consists of Lanka Tiles Limited (in which LWL has a controlling interest) and two wholly owned companies of Lanka Tiles, which are Ceredec Limited and Lanka Tiles and Trading Limited.

Lanka Tiles and its subsidiaries, which are engaged in the manufacture and the sale of floor tiles, had performed extremely well, Mr.Mahadeva said. The consolidated profit of LTL and its two subsidiaries had risen by 67% to Rs.105 million in 1999/2000 from Rs.63 million in the previous year.

The third set of companies in the Lanka Walltile Group consists of Ceyexxe Plantations Limited (CPL), a plantations management company in which Lanka Walltile has a controlling interest, and its subsidiaries.

The subsidiaries of CPL are Horana Plantations Limited, a company which owns 16 tea and rubber estates, and Uni-Dil Packaging Limited, a company which manufactures and sells packing cartons. Horana Plantations also has two relatively small wholly owned subsidiaries.

Mr.Mahadeva said that Ceyexxe Plantations Ltd have shown a substantial improvement this year, recording profit of Rs.23.1 million compared to a net loss of Rs.9.3 million the previous year.