Ceylon Tobacco boosts Govt. coffers

Thursday, 2 February 2012 00:31 - - {{hitsCtrl.values.hits}}

Ceylon Tobacco Company Plc (CTC) said yesterday that its contribution to the state revenue in 2011 had increased by Rs. 9.5 billion to Rs. 66 billion.

It said this was possible due to “the Government’s rapid advancement in economic policy and infrastructure which led to significant growth in tourism and business growth across the country.”

CTC also said that in 2011 the Company earned Rs. 6.6 billion in profit after tax, supported largely by growth in tourism in Sri Lanka, and the opening up of markets in the North and East in the post-conflict era.

“The strong operating performance was also driven by focus on cost control and increased efficiencies across the organisation, in addition to improvements in its brand mix,” CTC said said.

“The commendable efforts of law enforcement authorities remain a cornerstone of measures to contain the unauthorised/illicit products from entering the market which supported the company’s performance and therein its contribution to government revenue. In 2011, a total of 657 raids were conducted by authorities with over 76 million sticks being confiscated, valued at Rs1.2 billion,” CTC said.

The CTC Directors have recommended a Final Dividend of Rs.5.70 for 2011 per share less tax. The final dividend is subject to the approval of the shareholders at the Annual General Meeting to be held on 3 April. Once approved by the shareholders, the final dividend will be payable on the 17th of April.

For 2011, four interim dividends totalling Rs.28.90 per share less tax have been declared and paid already.

CTC’s flagship CSR initiative, the Sustainable Agricultural Development Program (SADP) reached a significant milestone when it registered its 10,000th farmer during December 2011, bringing the total number of families in the program to 10,264 across the island. To date 5,538 families have graduated from the program, which contributes towards enriching their livelihoods and helps beneficiaries reach a measure of economic self-sufficiency.