CTC revenues languish in 1Q; profits stay flat

Revenue growth at Ceylon Tobacco Company PLC (CTC) eased during the three months ended in March 2021 (1Q21), albeit recovering from the pandemic-struck December 2020 quarter but profits remained flat. 

The monopoly cigarette maker recorded revenues of Rs.34.8 billion for the quarter under review, up 1.5 percent from the same period last year.

The sales volumes increased by 3.8 percent from the same period last year. The company engages in exports too. 
CTC’s sales reached a pre-pandemic high of Rs.44.6 billion in the fiscal third quarter ended in September 2020, when the broader economic activities boomed from the effects of the pent-up demand. 

The company reported earnings of Rs.20.92 a share or Rs.3.92 billion for the quarter under review, little changed from 20.98 a share or Rs.3.93 billion in the same period in 2020.The board of directors approved a first interim dividend of Rs.19.00 a share, payable by June 10, which is one of the highest payout ratios. 

The excise and other levies payable to the government during the quarter amounted to Rs.26.4 billion, compared to Rs.25.9 billion in the same period, last year. 

Further, the company booked Rs.2.8 billion worth of corporate income tax for the quarter, unchanged from last year. 

British American Tobacco International Holdings BV and Philip Morris Brand SARL hold 84.13 percent and 8.32 percent stake each in CTC.