Over Rs. 15 billion PAT for CTC amidst Covid-19
2 years ago
In their annual report for the year 2020, Ceylon Tobacco Company PLC (CTC) Chairperson Suresh Kumar Shah reported that the CTC was able to reach a profit after tax (PAT) of Rs. 15.58 billion, indicating the company’s strategy in “a win win-win approach to value creation”. Shah further said that amidst the lockdown and the inevitable economic toll, the company could deliver its shareholders a recorded return on invested capital (ROIC) of over 120% during the said year 2020. In terms of earnings per share, it stood at Rs. 83.16 while the net asset value per share was at Rs. 24.57. By 31 December 2020, CTC could be listed as one of the most valuable companies in Sri Lanka by maintaining a market capitalisation of Rs. 192.7 billion. As of that date, this amounted to 7% of the total market capitalisation of the Colombo Stock Exchange (CSE). Also, Shah emphasised that the total distribution for the year came to Rs. 82.85 per share with the final dividend of Rs. 11.35 per share. In terms of the revenue to the Government, CTC contributed in earning over Rs.110 billion of tax during the year while being the country’s largest individual tax contributor, constantly for many years. It is 8% from the country’s total tax revenue during 2020. Sri Lanka’s illicit cigarette market significantly challenges the ability in generating the shared value. It is because the smuggled cigarettes provide a cheaper alternative to consumers and the taxes do not add to the cost of illicit products. However, withstanding the challenges, CTC’s primary focus was on the safety of its employees and value chain partners.