December 06, 2019
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    Cigarette sales down by 11% in 3Q

    November 12, 2019

    Sri Lanka’s Ceylon Tobacco Company PLC (CTC) in their latest quarterly financials outline that the Government increasing the Excise duty on cigarettes in August 2018 and March 2019 lead to a price increase of legal cigarettes.As a result, the Ceylon Tobacco Company's sales volume for the third quarter ended 30th September 2019 had reduced by 11.0% in comparison to the same period last year.

    The financial further outline that company’s contribution to the Government revenue through Excise and other levies for the third quarter has increased by Rs.0.8 billion in comparison to the same period last year.Further, The Company’s profit after tax stood at Rs.4.51 billion for the three months ended 30 September 2019. Report further outlined that that the Company's continuous efforts in managing the cost base while focusing on right investments for sustainability contributed positively to Profit for the period.

    “The growth in low taxed products such as Beedi and smuggled illicit cigarettes remains as a key threat to the turnover of the legal industry and its contribution to the Government revenue” the company said in its financial review adding that the smuggled illegal cigarette consumption in Sri Lanka is growing exponentially due to the ever-widening price gap between legal and smuggled cigarettes with regular price hikes targeting legal products.CTC’s directors had recommended a second interim dividend of Rs. 21.00 per share to be paid on 28th November 2019 according to the financials.

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