Undoubtedly, Ceylon (Sri Lankan) Tea is one of the finest tasting teas in the world with ideal flavor, depth, aroma and strength. Tea is the 4th largest national GDP contributor & Tea small holders are the main contributors to the national tea production who are mainly based in lower elevations (below 600m amsl). Below figures on their profitability was taken from Economy Next (https://economynext.com/home-0.html). Sri Lanka’s Tea Smallholder Factories mentioned net profit increased 47% to Rs 13.7 million (roughly $76’111) in the month of December 2018 quarter from 2017 even though it was still in the red for the nine months. 

The company, in which John Keells Holdings has a 37.62% stake, reported earnings per share of 46 cents for the quarter in which sales dropped 27% to Rs. 481 million (Roughly $ 27 million).  

Interim results filed with the stock exchange showed that for the nine months to December 2018 it made a loss per share of 50 cents compared with earnings of 1.82 rupees the year before. 

In the December quarter, Tea Smallholder Factories, that makes black tea from leaves purchased from small farmers, made lower profits in the down southern Galle low country district where it has most of the sales. 

The loss from its factories in the Ratnapura district increased to Rs 12 million (Roughly $ 66,667) while profits increased from its factories in the central hills Nuwara Eliya district.

The other two main shareholders of the company are Akbar Brothers Ltd with 24.39% and Central Finance Company with 22.85%.

More Tea Articles & News: http://www.teawithnipun.com/

References

1.Original Post: https://economynext.com/Sri_Lanka_Tea_Smallholder_Factories_Dec_net_up_47_pct-3-13166-9.html

2.Picture source: https://www.sjp.ac.lk/news/sustainability-center-lipton-to-uplift-sustainability-of-sri-lankan-tea-lands/