The improved performance of Ceylon Tea Brokers during the financial year under review compared with the corresponding period the previous year is encouraging as the volatility in the global market continued further. It is a positive sign given that the country produced less tea, which sold at lower auction prices, which has a direct correlation to the earnings of a Tea Broking Company, Ceylon Tea Brokers Executive Director Waruna de Silva told Daily News Business.
The year under review, the company recorded revenue of Rs.185.69 million, compared to Rs. 157.49 million in the previous financial year. While the profit after tax increased by 58 %, from Rs. 36.2 million in the previous year to Rs. 57.26 million in the financial year. The company was also able to record a 26.9 % return to shareholders, he said.
Ceylon Tea Brokers focused mainly on consolidation. This approach has proved as to be a successful endeavor; based on the feedback received from the industry, clients and the regulators. Along with consolidation, the company has also recorded a moderate growth with the Ceylon Tea Brokers market share based on the volume of tea sold increasing from 8.77 % to 9.15 %. In line with the company’s objectives, its market shares in terms of the value of tea sold has grown to 9.51 % during the financial year.
This is of significant importance as it indicates a better quality catalogue, which has always been the aim of Ceylon Tea Brokers on behalf of their clients.
The company continues to focus on providing each factory with detailed attention and close monitoring at all times.
This strategy continues to help clients to not only to increase the quality of tea produced, but the resultant increase in the prices obtained at the auctions and the increase of quantity produced and improved productivity, thereby improving their bottom line as well. The Golden Cup Awards were also held during the year; aimed at recognizing excellence in production. The awards aim to reward those who have achieved superior results during the year, while motivating others to improve their quality and value. Ceylon Tea Brokers continues to remain strong in the Low Grown category and gaining even more clientele from private tea factory owners.
The company’s market share in this sector has grown from 12.50 % to 13.61 % during this year under review, he said.
“This is a demanding end of the business and we are very pleased that more and more individual owners of factories are considering us as the preferred broker for the marketing of their teas. The growth in our profit has been good and we hope to keep up the momentum by further cost consolidation.
"The infrastructure and capacity of the company at present can easily handle a higher volume of tea and considering that the bulk of the costs are fixed, an increase in volume would have a direct impact on the bottom line of the company.
"The growth in profit has been commendable and Ceylon Tea Brokers aims to keep up the momentum by further cost consolidation," de Silva said.