Tea sector helps Horana Plantations to return to profit

Sri Lanka’s Horana Plantations PLC, a unit of businessman Dhammika Perera’s Vallibel group, recorded a net profit of Rs.7 million for the September quarter (2Q18) against a net loss of Rs.84 million recorded for the same period last year.

The performance was helped by the company’s tea sector, which saw a turnaround due to higher tea prices at tea auctions. The earnings per share for the period was 28 cents against a loss per share of Rs.3.37.

The revenue for the quarter rose to Rs.537.2 million from Rs.417.4 million a year ago.

For the six months ended September 30, 2017, the company reported a net profit of Rs.21.2 million, recovering from a net loss of Rs.149.2 million. The tea sector for the six months recorded gross profit of Rs.131.9 million against a gross loss of Rs. 43.5 million a year ago, on a revenue of Rs.987 million. 
The rubber sector narrowed its losses to Rs.20.5 million from Rs.38.2 million on an improved revenue of Rs.154.3 million.

Vallibel Plantation Management Limited owns 51 percent of the company while Dr T Senthilverl, Naratha Ventures and AEC remain key minority shareholders. 

Perera acquired the control of Horana Plantation in 2012 for nearly Rs.2.9 billion from CT Holdings PLC.