Tea Smallholder Factories June profits up

Tea Smallholder Factories PLC, a subsidiary of John Keells Group, reported solid  performance for the quarter ended June 30, 2022 amid strong top line growth. 

The company, which engages in the business of purchasing green tea leaves from smallholders and leaf collectors to manufacture black tea, reported revenues of Rs. 932.1 million, up 86 percent year-on-year.

The company’s three geographical segments except Ratnapura recorded strong growths in revenue. Revenue from its Galle operations rose to Rs.579.8 million from Rs.271.6 million while revenue from Nuwara Eliya operations rose to Rs.275.2 million from Rs.127.3 million in the 
previous year.

Accordingly, the company reported earnings of Rs.6.11 per share or Rs.183.2 million compared to earnings of 2 cents a share or Rs.463. 000 in the corresponding quarter of the 
previous year.

Tea Smallholder Factories operates seven factories in the low-grown region of Sri Lanka, located in Galle, Ratnapura and Ginigathhena.

As at June 30, 2022, John Keells Holdings PLC held 37.62 percent of Team Smallholder Factories PLC while Akbar Brothers Limited and Central Finance Company PLC along with its Growth Fund held 24.39 percent and 29.3 percent each in the company.