Sri Lanka’s Madulsima Plantations revenue shows growth in 2020
Sri Lanka’s Madulsima Plantations PLC, which specialized in tea, has recorded a total revenue of Rs. 2.83 billion, with total assets amounting to Rs. 71.2 billion for the 2020 financial year, according to the Company’s annual report.
Madulsima Plantations Chairman/Managing Director D.H.S. Jayawardena has reportedly introduced the annual report and audited financial statements of the company for 2020 with a few of his insights on the year that had ended.
“The company recorded a strong turnaround performance for the 2020 financial year amidst many socio-economic challenges with the Covid-19 pandemic that prevailed during the year under review,” Jayawardena has been quoted as saying in the local media.
The Company has seen a nearly 42% increase in the total revenue of Rs. 2.83 billion for 2020, when compared to the total revenue of Rs. 2 billion in 2019, the report has noted.
“For 2020, the company recorded an operational profit before finance cost and taxation of Rs. 186 million, and an after-tax loss of Rs. 201 million, when compared with the previous year’s operational loss before finance cost and taxation of Rs. 435 million, and an after-tax loss of Rs. 764 million,” Jayawardena has further stated.
The annual report also noted that improved tea prices with lower cost of production per kg, along with reduced finance costs, have primarily contributed to the company remarkably outperforming last year’s financial results, according to local media reports.
According to reports, Madulsima Plantations has also reported an all-time high production volume of 5.084 million kilos after five years, even though the tea industry had plunged to an all-time production low after 23 years.
“The bounce back of higher production volumes is a result of the company rightly investing in the upliftment of its agricultural standards, factory production expansion, and equipment upgrading programmes. This will place the company in a stronger and more sustainable future,” Jayawardena has added.
Madulsima Plantations has also stated that its Board of Directors had taken very drastic steps to mitigate losses by introducing several reforms and making many changes at the grassroots level.
“This year’s production is the highest for the last five years. Yield is also the highest for the last five years, and revenue also the highest for the last five years. With the cooperation of all staff, these figures are reached, and the management hopes that next year, with these prices and more productivity and taking many agricultural corrections, we can pay dividends to the shareholders,” Jayawardana has noted.
Sri Lanka’s tea industry is showing a steady growth in revenue given the profits recorded by local tea producing and exporting companies. The prices fetched by Sri Lankan tea have also seen an increase due to the quality standards. Sri Lanka’s tea industry is presently in the process of developing and upgrading it’s production lines. All these are indicative of the expanding business/investment opportunities in Sri Lanka’s tea industry given its ongoing growth momentum.
|Article Code :||VBS/AT/20210629/Z_4|