The Ceylon Tobacco Company’s sales volume for the quarter ending 31 March 2020, had declined by 13% compared to same period last year due to the impact of the excise led cigarette price increases during 2019, particularly the increase of 72mm category prices, the company outlined in its latest quarterly financials. Moreover, During the said period, sales have been further impacted due to product access restrictions faced by consumers and retailers as a result of the island wide curfew intermittently imposed to contain the COVID-19 pandemic, it said. The financial further outline that the company’s turnover and the contribution to the Government revenue through excise, other levies and taxes were reduced marginally in comparison to the same period last year. Further, the Company’s profit after tax has reduced by 3% to Rs.3.93 billion for the quarter ended 31st March 2020, comparison to the same period last year largely due to the reduction of volumes as explained earlier. From 20th March 2020 onwards, CTC has been operating its business strictly in conformity with Government guidelines and directives issued from time to time with regard to the implementation of curfew, work from home arrangements and health and safety measures. During this period the primary focus of the company has been to ensure the continuation of business activities subject to the health and safety of employees as well as the work force of all extended value chain partners. As such CTC has implemented Work from Home Policy for all office-based employees utilizing IT capabilities to facilitate seamless remote working conditions. All other employees have on a need-only basis been engaged to carry out limited critical responsibilities subject to taking all necessary health and safety precautions. “Whilst acknowledging and appreciating the timely and effective measures being taken by the Government to contain the COVID-19 pandemic in Sri Lanka, the Management is committed to take decisions and measures in order to ensure that CTC continues to support the Government with much needed revenue and deliver shareholder value,” it said. CTC’s directors had recommended a first interim dividend of Rs. 19.00 per share to be paid by the 04th of June 2020 according to the financials.
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