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FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » CTC contributes Rs 43.7 bn to Govt. as excise

CTC contributes Rs 43.7 bn to Govt. as excise

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Melissa Pereira


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Ceylon Tobacco Company (CTC) contributed LKR 43.7 billion to the Government as excise and other taxes for the six months ended 30th June 2015; this is an increase of 18% in comparison to the same period last year and was primarily driven by an excise led price increase experienced in October 2014 along with higher volumes during the first six months of 2015.

The increase in domestic volumes of 10% as at the end of the 2nd quarter could be attributed to a higher level of consumer confidence and an increase in disposable income.

The law enforcement agencies continued to effectively curtail the spread of unauthorized and illicit tobacco products. In the first six months of 2015, a total of 582 raids have yielded 6.3 million illegal cigarettes at a market value of LKR 189 million.

The Company’s Profit after Tax stood at LKR 5.5 billion for the six months ended 30th June 2015.

The Company complied with 60% Graphical Health Warning in January 2015 and 80% GHW in March with the subsequent amendment to the law. The total cost of implementing GHW for the first 6 months of 2015 is LKR 118 million.
CTC remains committed to invest into our key brands and predominantly to infuse value in our main-stream brand John Player Gold Leaf.
CTC’s flagship CSR initiative, the Sustainable Agricultural Development Programme (SADP) continued to focus on alleviating poverty and empowering the livelihoods of families in rural Sri Lanka.

The total number of active families supported by the Company as at end June 2015 stood at 17,464, comprising of 67,307 beneficiaries in 16 districts. SADP was also recognized as the winner in the Social Empowerment Category at the Asia Responsible Entrepreneurship Awards 2015 held in Macau, China.
The Directors recommend a second interim dividend of Rs. 24.00 per share to be paid by the 18th of August 2015. 
Courtesy: Daily News 3 August 2015

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