FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post


ADVERTISE
Poll

EXCHANGE RATE PREDICTION: 2022

Govt’s price control, a plus for CTC Vote_lcap11%Govt’s price control, a plus for CTC Vote_rcap 11% [ 21 ]
Govt’s price control, a plus for CTC Vote_lcap20%Govt’s price control, a plus for CTC Vote_rcap 20% [ 37 ]
Govt’s price control, a plus for CTC Vote_lcap29%Govt’s price control, a plus for CTC Vote_rcap 29% [ 53 ]
Govt’s price control, a plus for CTC Vote_lcap40%Govt’s price control, a plus for CTC Vote_rcap 40% [ 74 ]

Total Votes : 185

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» AAIC 100 = SCAP 16
by Riz123 Today at 2:42 pm

» SGH buys EXPO from retailers
by samaritan Today at 12:13 pm

» Buy lofc tomorrow - Maharaja
by ADVENTUS Today at 11:47 am

» US inflation eased slightly in July
by ADVENTUS Today at 11:25 am

» ACL; MELS; HHL; BIL; LWL- STOCKS TO WATCH
by ADVENTUS Today at 11:19 am

» LOFC Future
by ADVENTUS Today at 11:17 am

» Pakistan stocks surge on IMF Staff level agreement - CSE is warming up for the big run
by samaritan Today at 11:16 am

» LOLC FINANCE PLC (LOFC.N0000)
by Anushka Perz Today at 10:24 am

» L G I L - Maharaja special
by Chula Yesterday at 8:13 pm

» HAYLEYS PLC (HAYL.N0000)
by cseboss Yesterday at 11:34 am

» NO FURTHER INCREASE IN TAXES-PRES. RANIL WICKRAMASINGHE
by ADVENTUS Tue Aug 09, 2022 3:48 pm

» CARGO BOAT DEVELOPMENT COMPANY PLC (CABO.N0000)
by Dasun Maduwantha Tue Aug 09, 2022 12:10 pm

» Nestle‚ declares highest ever dividend
by Shiranli Tue Aug 09, 2022 11:24 am

» PRIME LANDS RESIDENCIES PLC (PLR.N0000)
by Anushka Perz Tue Aug 09, 2022 11:15 am

» MULTI FINANCE PLC (MFL.N0000)
by Eleven Mon Aug 08, 2022 9:28 pm

» AGSTAR PLC (AGST.N0000)
by Thushara Ayya Mon Aug 08, 2022 4:18 pm

» LIOC ....Get in soon
by samaritan Mon Aug 08, 2022 11:49 am

» Sinopec likely to enter Lankan fuel market
by samaritan Mon Aug 08, 2022 9:41 am

» RW - Rescue Warrior of Sri Lanka's Economy
by reyaz Mon Aug 08, 2022 8:17 am

» Should Central bank increase Interest rates?
by reyaz Mon Aug 08, 2022 7:52 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Govt’s price control, a plus for CTC

Govt’s price control, a plus for CTC

Go down  Message [Page 1 of 1]

1Govt’s price control, a plus for CTC Empty Govt’s price control, a plus for CTC Sun May 27, 2012 3:39 am

CSE.SAS

CSE.SAS
Global Moderator

Although the government’s control on leading tobacco firm, Ceylon Tobacco Company’s (CTC) products is seen as a hindrance given that a price increase is almost guaranteed once a year, the firm’s net revenue has been found to improve by Rs. 0.23 for every Re. 1 increase in price per stick, a recent research report has revealed. With the dominant position of CTC and the addictive nature of the products, demand graph for CTC’s products have remained more or less vertical, the report published by Arrenga Capital Research stated.

“Volume levels which were seen trending downwards have now recovered to fall back on track after 2009. CTC has proved to remain strong amid declining business to see a 5 year CAGR of 17.6% in top line mainly supported by price increases,” the 1Q2012 Earnings Review prepared by the research firm stated.

According to financials, CTC’s net profit has increased by a strong 82.9% YoY to Rs. 1,489m in 1Q2012 whilst net revenue improved by 11.5% YoY to Rs.4,498m. The gain was primarily led by the 10% increase in price cigarettes in October 2011 whilst saving in other operating expense which assisted to bring down the operating cost base by 23.7% YoY.

“The YoY increase in revenue can be justified with additional contribution flowing in after the 10% price increase of cigarettes made last year (with effect from 20.10.2011) with the comparative period excluding the LKR2.0 increment. However, volume levels for 1Q2012 had remained stagnant on a QoQ comparison,” the report highlighted.

It further noted that although falling volume levels had been a worrying element for CTC in the past increasing volume too poses a challenge now as the factory operates at a capacity of 4.5bn stick p.a and had worked to its full capacity in 2011.

“Hence, the question emerges with the ability to cater rising volume levels. The management disclosed that they would be able to manufacture 5bn sticks p.a with overtime. No plans on expansion have been intended so far though importing machinery and starting up a process over a short time phase cannot be a big challenge. Costs could be easily combated with their low gearing and rich reserves.”

“However, the management highlighted that nowhere in the globe has any cigarette manufacturer recorded a +10% growth in volumes over a year.

CTC had not involved with any capacity expansion for nearly a decade. Thus, the management believes that they could continue with the current capacity and contingencies for a surge in demand could be met by importing (which tends to be relatively cheaper) with BAT’s support,” the report further added.
http://www.nation.lk/edition/biz-news/item/6451-govt%E2%80%99s-price-control-a-plus-for-ctc.html

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum