Sri Lanka’s cigarette sales down 38% amidst COVID-19 pandemic

The Ceylon Tobacco Company’s performance in the three months ended 30th June 2020, has been significantly impacted due to the lockdown measures and impact to National as well as personal economies of consumers owing to the Covid-19 pandemic, the company said in its latest quarterly financials.

During the period under review, company’s sales volumes declined by 38% with gradual resumption of activities from mid-May onwards. Consequently, the Company’s turnover of  Rs. 24.1 billion and Government revenue through Excise and other levies of Rs. 18.6 billion for the period were reduced by 33% compared to the same period last year.

The Company’s profit before income tax for the period recorded Rs. 4.2 billion with a reduction of  Rs. 3.4 billion due to the collective impacts of revenue reduction by Rs.3.1 billion and reduction in net finance income by Rs.0.2 billion due to constant rate cuts on deposits.

The Company’s profit after tax for the three months ended 30th June 2020 reported as Rs.3.1 billion, which is a reduction of 34% in comparison to the same period last year driven by COVID-19.

 

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