Ceylon Tobacco : Interim Financial Statement as at 30.06.2024

Ceylon Tobacco Company PLC

Interim Financial Statements - 3 months ended 30 June 2024

Ceylon Tobacco Company PLC

Summary of Performance for the 3 months ended 30th June 2024

The Company's sales volume during the three months ended 30th June 2024 was lower in comparison to the same period last year. The decline in volume is consequential to the successive increases in excise duties and other taxes over the course of the last two years. Company also took steps to export tobacco leaf which partially mitigated the loss in overall turnover.

The cost base of the Company is adversely impacted by the increases in raw material cost driven by inflation. The Company's profit before income tax for the three months ended 30th June 2024 stood at Rs. 12.0bn, while the Company's profit after tax for the same period was Rs. 7.2bn.

Dividends

The Directors recommend a second interim dividend of Rs. 38.30 per share to be paid by 28th August 2024.

CEYLON TOBACCO COMPANY PLC

Statement of Profit or Loss and Other Comprehensive Income

(all amounts in Sri Lanka Rupees millions)

			03 months ended 30 June	06 months ended 30 June
			2024	2023	2024	2023
			Un-audited	Un-audited	Un-audited	Un-audited
	Turnover	50,323	54,767	96,174	101,702
	Government Levies	(34,735)	(40,582)	(66,436)	(74,808)
	Revenue	15,588	14,185	29,738	26,894
	Other operating income	0	25	2	25
	Raw material used	(985)	(939)	(2,070)	(1,832)
	Employee benefit expense	(683)	(637)	(1,310)	(1,219)
	Depreciation & amortisation expense	(191)	(118)	(340)	(221)
	Other operating expenses	(1,998)	(2,551)	(2,966)	(4,056)
	Net finance income		296	359	653	851
	Profit before income tax	12,028	10,324	23,707	20,442
	Income tax expenses	(4,811)	(4,078)	(9,686)	(8,197)
	Profit for the period	7,217	6,246	14,021	12,245
	Other Comprehensive Income
	Re-measurement of defined benefit obligation	(8)	(5)	(16)	(11)
	Total other comprehensive income for the year	(8)	(5)	(16)	(11)
	Total comprehensive income for the period	7,209	6,241	14,005	12,234
	Earnings Per Share (basic and diluted)	38.53	33.34	74.85	65.37
	The Notes form an integral part of these Interim Financial Statements.

………………………………………

Towhid Akbar

Finance Director

Date : 12th August 2024

CEYLON TOBACCO COMPANY PLC

Statement of Financial Position

(all amounts in Sri Lanka Rupees millions)

	30-Jun	31-Dec
	2024	2023
Assets	Un-audited	Audited
Non-current assets
Property, plant and equipment	5,827	5,885
Intangible assets	-	-
Employee benefit asset	50	89
Other receivables	254	219
Total non-current assets	6,131	6,193
Current assets
Inventories	5,995	6,611
Trade and other receivables	5,303	5,603
Cash and cash equivalents	19,239	24,538
Total current assets	30,537	36,752
Total assets	36,668	42,945
Equity and Liabilities
Equity
Stated capital	1,873	1,873
Retained earnings	8,434	9,891
Total equity attributable to equity holders	10,307	11,765
Non-current liabilities
Unfunded retirement benefit obligation	-	-
Deferred tax liabilities	659	574
Lease liabilities	10	32
Long term borrowings	306	324
Total non-current liabilities	975	930
Current liabilities
Trade and other payables	15,051	19,221
Lease liabilities	134	243
Current taxation	9,758	10,397
Dividends payable	-	-
Unclaimed dividends	444	389
Total current liabilities	25,386	30,251
Total liabilities	26,361	31,181
Total equity and liabilities	36,668	42,945
Net Asset Per Share	55.02	62.81

The Notes form an integral part of these Interim Financial Statements.

I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act, No. 07 of 2007.

Towhid Akbar

Finance Director

Date : 12th August 2024

The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved and signed for and on behalf of the Board of Directors:

Fariyha Subhani	Towhid Akbar
Managing Director and CEO	Finance Director
Date :	12th August 2024		Date : 12th August 2024

CEYLON TOBACCO COMPANY PLC

Statement of Changes in Equity

(all amounts in Sri Lanka Rupees millions)

		Stated	Retained	Total
		capital	earnings
	Balance at 1 January 2023	1,873	15,620	17,493
	Profit for the period		12,245	12,245
	Other comprehensive income	-	(11)	(11)
	Total comprehensive income for the period	-	12,234	12,234
	Transactions with owners of the Company, recognised directly in
	equity
	Write back of unclaimed dividends	-	-	-
	Dividends	-	(20,437)	(20,437)
	Total transactions with shareholders	-	(20,437)	(20,437)
	Balance at 30th June 2023 (Un-audited)
	1,873	7,417	9,290
	Profit for the period	-	15,411	15,411
	Other comprehensive income	-	(35)	(35)
	Total comprehensive income for the period	-	15,375	15,375
	Transactions with owners of the Company, recognised directly in
	equity
	Write back of unclaimed dividends	-	24	24
	Dividends	-	(12,925)	(12,925)
	Total transactions with shareholders	-	(12,901)	(12,901)
	Balance at 31 December 2023 (Audited)	1,873	9,891	11,764
	Balance at 1 January 2024	1,873	9,891	11,764
	Profit for the period	-	14,021	14,021
	Other comprehensive income	-	(16)	(16)
	Total comprehensive income for the period	-	14,005	14,005
	Transactions with owners of the Company, recognised directly in
	equity
	Write back of unclaimed dividends	-	-	-
	Dividends	-	(15,462)	(15,462)
	Total transactions with shareholders	-	(15,462)	(15,462)
	Balance at 30 June 2024 (Un-audited)	1,873	8,434	10,307

CEYLON TOBACCO COMPANY PLC

Statement of Cash Flows

(all amounts in Sri Lanka Rupees millions)

	06 months ended 30 June
	2024	2023
	Un-audited	Un-audited
Cash flows from operating activities
Profit before Tax	23,707	20,442
Adjustments for:
Depreciation & amortisation expense	340	221
Interest expense	13	15
Interest income	(648)	(806)
Write off of property, plant & equipment	0	0
Net interest on retirement benefit obligations	23	11
Provision for obsolete inventories and doubtful Debts	188	61
Exchange gain from long term borrowings	(18)	(60)
Operating profit before working capital changes	23,605	19,884
Changes in working capital
Inventories	429	46
Trade & other receivables	263	(2,077)
Trade & other payables	(4,171)	8,908
Cash generated from operations	20,127	26,760
Interest received	648	806
Interest paid	(13)	(15)
Gratuity paid - unfunded scheme	-	-
Income tax paid	(10,224)	(6,625)
WHT paid	(1,685)	(2,924)
Net cash generated from operating activities	8,853	18,002
Cash flows from investing activities
Purchase and construction of property, plant & equipment	(282)	(150)
Purchase of intangible assets	-	-
Net cash used in investing activities	(282)	(150)
Cash flows from financing activities
Proceeds from long term borrowings	-	-
Dividends paid	(13,738)	(24,622)
Unclaimed dividends paid	-	-
Payment of finance lease liabilities	(132)	(82)
Net cash outflow from financing activities	(13,870)	(24,704)
Net increase/ (decrease) in cash & cash equivalents	(5,300)	(6,852)
Cash & cash equivalents at the beginning of year	24,538	24,217
Increase/ (Decrease) in cash	(5,300)	(6,852)
Cash & cash equivalents at the end of the period	19,239	17,365
Analysis of cash & cash equivalents at the end of the period
Cash in hand & bank balances	15,839	15,365
Short term investments	3,400	2,000
Total cash & cash equivalents	19,239	17,365

CEYLON TOBACCO COMPANY PLC

Notes to the interim financial statements

1. General information
   Ceylon Tobacco Company PLC is a public limited liability Company domiciled in Sri Lanka. The principal operations of the Company are manufacturing, marketing and selling cigarettes. The registered office of business is 178, Srimath Ramanathan Mawatha, Colombo 15. The ultimate holding company of Ceylon Tobacco Company PLC is British American Tobacco PLC through British American Tobacco International Holdings BV.
2. Basis of preparation
   The condensed interim financial statements of Ceylon Tobacco Company PLC are for the six months ended 30 June 2024. They have been prepared in accordance with LKAS 34 - Interim Financial Reporting. These interim financial statements have been prepared in accordance with the SLFRS standards and IFRIC interpretations issued and effective as at the time of preparing these statements. The condensed interim financial statements do not include all of the information required for full annual financial statements and have not been audited.
3. Comparatives
   Comparatives are provided for the same period last year and for the statement of financial position at the date 31 December 2023. Where necessary comparative figures have been reclassified to conform with the current year's presentation.
4. Contingent Liabilities
   There have been no material changes to the contingent assets or contingent liabilities since the last annual reporting period.
5. Events occurring after the reporting period
   No material events have occurred since the end of the reporting date which would require adjustments to, or disclosure in the financial statements.
   The directors recommend a second interim dividend of Rs 38.30 per share for 2024 and will be payable on 28th August 2024.
6. Market Price Per share

For the 6 months ending 30 June,	2024	2023
	Rs	Rs
Highest	1,350.00	848.75
Lowest	1,001.00	680.00
Last Traded	1,238.00	820.25

7 20 Largest Shareholders of the Company

Name of Shareholder

No. of Shares

% Holding

30 June 2024

British American Tobacco International Holdings B.V. Philip Morris Brand SARL

CB NY S/A Allan Gray Frontier Markets Equity Fund Limited J.B.Cocoshell (Pvt) Ltd

Hatton National Bank PLC - Capital Alliance Quantitative Equity Fund Rubber Investment Trust Ltd A/C 01

Mrs Singh

Invenco Capital Private Limited Mr.Jayawardena Sanjeeva Praneeth Miss N. Harnam

Deutsche Bank AG Singapore A/C2(DCS CLT ACC FOR DEUTSCHE BANK AG SINGAPORE- PWM WM CLIENT)

ODYSSEY CAPITAL PARTNERS (PRIVATE) LIMITED

Harnam Holdings SDN BHD

Deutsche Bank AG AS Trustee For JB vantage Value Equity Fund BNYM RE-GHI Holdings Mauritius

Union Assurance PLC - Universal Life Fund Mr. J.D. Bandaranayake

Mr. J.D. Bandaranayake

Galle Face Capital Partners PLC Mr.A.M.Weerasinghe

Sub Total

Others

Total Shares

9 Computation of % of Public Shareholding

Parent Company

British American Tobacco International (Holdings) BV

Directors shareholding (including spouses & children)Mr. S.K. Shah

Mrs. M. Abraham Mr. S.R. Kidd Mrs. R. Rahman Mr. K.De Alwis Mr. T. Akbar

Mr. H.De Silva Wijeyeratne Mr. U. Zahur

Parent Company

Subsidiaries or Associate Companies of Parent Subsidiaries or Associate Companies

10% or more holding

Directors shareholding (including spouses & children) Public Holding

Public Holding as a % of Issued Share Capital

Number of shareholders holding the Public Holding

Market Capitalisation of Public Holding (Rs. Million)

157,590,931	84.13
15,585,910	8.32
3,267,374	1.74
812,374	0.43
448,961	0.24
327,698	0.17
297,233	0.16
218,027	0.12
215,111	0.11
207,186	0.11
175,600	0.09
149,883	0.08
145,000	0.08
142,883	0.08
129,687	0.07
127,023	0.07
118,412	0.06
112,450	0.06
105,000	0.06
103,500	0.06
180,280,243	96.24
7,043,508	3.76
187,323,751	100.00

30 June 2024

No of Shares

157,590,931

157,590,931

-

-

-

-

-

-

-

-

-

157,590,931

-

-

-

-

29,732,820

187,323,751

15.87%

4,586

36,809

The Company complies with option 1 of the Listing Rules 7.13.1(a) - Float Adjusted Market Capitalisation of Rs. 10.0Bn which requires no minimum public holding percentage.