“While overall volume was down, the company recorded a 56% growth in the premium segment, driven by the launch of its innovative variant Dunhill SWITCH, which now accounts for nearly 48% of the Dunhill business. Export volume has increased by 78% off a small base, increasing export revenue from Rs. 19 million to Rs. 43 million,” CTC said.
It said the Government’s law enforcement agencies continue to effectively curtail the spread of unauthorised and illicit tobacco products, supporting CTC’s performance. In the first half of 2012, a total of 435 raids had yielded 34 million illegal sticks at a market value of Rs. 748 million.
CTC said in the first half ended 30 June 2012, profit after tax stood at Rs. 3.9 billion, driven largely by one-off improvements in Other Operating Expenses (OOE) and an aggressive cost savings drive.
One off improvements in OOE included a gain on US dollar deposits, the lack of contribution to the gratuity fund versus Same Period Last Year (SPLY) due the recognised surplus in the fund, and different expenditure phasing for the Sustainable Agriculture Development Program (SADP). The gap in OEE versus the corresponding period in the previous year will close though the second half as timing differences for expenditure will get adjusted.
CTC Directors have recommended a second interim dividend of Rs. 12.80 per share, which will be paid on 17 August 2012.
The company also said CTC’s flagship CSR initiative, the Sustainable Agricultural Development Programme (SADP), continues to empower livelihoods of families living below the poverty line in rural Sri Lanka.
The total number of beneficiaries in this program has grown to 11,864 families or 44,309 persons across 13 districts, out of which 7,871 families have graduated from the program and are enjoying the benefits of reaching economic self-sufficiency in a sustainable manner. The company aims to extend SADP to 1,800 families in 2012, out of which 1,600 families will be selected from the Northern Province.