Damro Plantations posts Rs. 1.2 b profit in FY21

Thursday, 10 June 2021 01:25 - - {{hitsCtrl.values.hits}}

Damro which acquired two plantation companies, namely Agalawatte Plantations PLC and Pussellawa Plantations Ltd., in March 2017, has turned around the performance by posting a profit of Rs. 1.2 billion in the 2020/21 Financial Year.

Damro in a statement said at time of acquisition of the companies, Agalawatte Plantations in particular was in the brink of insolvency and the bottom line continued to be in the red, until introduction of stringent management practices, ensured that such losses of the companies were reduced to just Rs. 21 million by end-March 2020.

Despite challenges the world has never seen before, as a consequence of the pandemic, Damro Plantations yet forged ahead with introduction of fresh strategies towards overcoming such grave concerns and is proud of being successful in posting a praiseworthy profit of Rs. 1,230 million for the period ending March 2021.

Damro Plantations is at present the leading producer of natural latex in the country and also possess the largest extent of rubber plantations, where the major portion of the extent of over 25,000 acres is found spread across the Western Province.

The vibrant market that existed for natural rubber, brought forth by a strong demand for the produce, certainly contributed towards an improvement in the overall profitability. Tea prices too projected an upward trend during the period and the sales averages achieved by the company not only kept pace, but also moved above national averages, having been at lower levels before.

Despite many companies restricting expenditure on replanting, in the thick of continuous uncertainties, Damro Plantations however has during the past three years, completed replanting 2,200 acres of rubber and 300 acres of tea. The company is now in the midst of planting a further 1,950 and 250 acres of rubber and tea respectively during the current season alone, which will be an all-time high.

With the ongoing recruitment of enthusiastic youth to train under senior and experience superintendents, the company has seen an appreciable improvement in teamwork and commitment amongst the cluster of plantation executives, in fulfilling their obligations and responsibilities. They work alongside a band of loyal staff and a workforce, ably supported by an efficient management team and thus have certainly ensured that the growth of the core business of the company is sustained and in turn, they have deservedly flourished with improved rewards.

“Due to the continuous focus on establishing long-term sustainability, Damro Plantations are confident of realising a steady growth in the overall performance of the primary crops during the ensuing years, largely strengthened by prudent investments and continuous improvements in key areas of cultivation and in production processes,” the statement added.