CTC’s contribution to State Coffers tops Rs. 30 Bn in Second Quarter of 2018, profits up 47%

Sri Lanka’s Ceylon Tobacco Company PLC’s (CTC) a unit of British American Tobacco, contribution to government coffers in terms of Excise and other Levies tops over Rs. 30.17 billion in the second quarter ended June 2018, latest results outline. The report stated that CTC remains committed to create value for Sri Lankan economy and government revenue, whilst the year-on-year contribution to government revenue had increased by 7.4% with over Rs. 2 billion increase compared to Rs. 28.09 billion for the same period of 2017. CTC had posted profits after taxes amounting to over Rs. 4.35 billion, an increase of 47% in the June 2018 quarter which has rose from Rs. 2.95 billion in last year, mainly fueled by volume growth and a sharp fall in some operating expenses.

Financials further outline that company’s total sales volume increased by 2.3% with revenue recording an increase from Rs. 36.3 billion to Rs. 38.8 billion in the second quarter of 2018, with an increase of 6% in domestic sales volume.  The report stated that net revenues grew 5.2% to Rs. 8.67 billion. CTC’s Earnings Per Share had rose from Rs, 15.77 a year earlier to Rs. 23.25 during the period ended on 30th June 2018 and Directors had recommended a payment of Rs. 19 per share as a Second Interim Dividend to shareholders by 29th August 2018.

Company further added that about 500 million cigarettes were being smuggled into Sri Lanka at a loss of Rs. 20 billion a year in taxes to government, and that the trend is expected to grow due to the widened gap between the legal and illicit cigarettes available in the market as well as the current macroeconomic factors that are impacting the consumer spending power. Meanwhile, authorities had carried out 909 raids on illicit cigarettes, the company said. CTC’s flagship Corporate Social Responsibility (CSR) initiative Sustainable  Agricultural Development Programme (SADP) that focuses on alleviating poverty and empowering the livelihoods of rural Sri Lankans had supported 19,664 families comprising 76,396 beneficiaries in 16 districts as at the end of the Second Quarter of 2018.