CTC posts higher revenue for 2Q amid “slight recovery”

Monopoly cigarette player Ceylon Tobacco PLC recorded higher top line growth for the quarter ended June 30, 2022 (2Q22), which the company attributed to a “slight recovery” from the prolonged impact of COVID-19 pandemic.
The turnover for the three-month period under review rose to Rs.42.3 billion from Rs.30 billion a year ago, largely helped by stick price increase in early part of June amid the increase in Value Added Tax (VAT).

The brief comment by the company on its financial accounts however didn’t include any information about cigarette sales.
The government levies during the period was Rs.32.2 billion, up from Rs.22.3 billion a year ago.
During the three months under review, the company saw a jump in other operating expenses to Rs.2.32 billion, up from Rs.552 million a year ago.
As a result, the earnings for the period fell to Rs.2.2 billion from Rs.3.9 billion.

For the first half (1H22), the company reported net profit of Rs.7.5 billion on a turnover of Rs.79.3 billion.
Meanwhile, CTC said the first installment of Surcharge Tax amounting to Rs.3.1 billion was paid on April 20, 2022 and a partial advance payment of Rs.1.4 billion from second installment was made on June 29, 2022. 
The company is liable for Surcharge tax worth Rs.6.3 billion. 
The directors have recommended a first interim dividend of Rs.10 per share to be paid by September 12, 2022.
British American Tobacco International holds 84.13 percent of CTC and Philip Morris holds 8.32 percent.