Ceylon Tobacco : Interim Financial Statement as at 31.03.2024

Ceylon Tobacco Company PLC

Interim Financial Statements - 3 months ended 31 March 2024

Ceylon Tobacco Company PLC

Summary of Performance for the 3 months ended 31st March 2024

The Company's sales volume during the three months ended 31st March 2024 was lower in comparison to the same period last year, mainly due to the tax led price increases in line with the Government's revenue proposals.

The cost base of the Company is impacted by the increase in raw material cost driven through inflation and the appreciation in foreign currency. The Company's profit before income tax for the three months ended 31st March 2024 stood at Rs. 11.7bn, while the Company's profit after tax for the same period was Rs. 6.8bn.

Dividends

The Directors recommend a first interim dividend of Rs.32.70 per share to be paid by the 31st May 2024.

CEYLON TOBACCO COMPANY PLC

Statement of Profit or Loss and Other Comprehensive Income

(all amounts in Sri Lanka Rupees millions)

			03 months ended 31 March
			2024	2023
			Un-audited	Un-audited
	Turnover	45,851	46,935
	Government Levies	(31,701)	(34,226)
	Revenue	14,150	12,709
	Other operating income	2	-
	Raw material used	(1,085)	(893)
	Employee benefit expense	(627)	(582)
	Depreciation & amortisation expense	(149)	(103)
	Other operating expenses	(968)	(1,505)
	Net finance income		357	492
	Profit before income tax	11,680	10,118
	Income tax expenses	(4,875)	(4,119)
	Profit for the period	6,805	5,999
	Other Comprehensive Income
	Re-measurement of defined benefit obligation	(8)	6
	Total other comprehensive income for the year	(8)	6
	Total comprehensive income	6,797	6,005
	Earnings Per Share (basic and diluted)	36.33	32.02
	The Notes form an integral part of these Interim Financial Statements.

………………………………………

Towhid Akbar

Finance Director

Date : 13th May 2024

CEYLON TOBACCO COMPANY PLC

Statement of Financial Position

(all amounts in Sri Lanka Rupees millions)

	31-Mar	31-Dec
	2024	2023
Assets	Un-audited	Audited
Non-current assets
Property, plant and equipment	6,053	5,885
Intangible assets	-	-
Employee benefit asset	70	89
Other receivables	256	219
Total non-current assets	6,379	6,193
Current assets
Inventories	7,383	6,611
Trade and other receivables	6,917	5,603
Cash and cash equivalents	23,305	24,538
Total current assets	37,605	36,752
Total assets	43,984	42,945
Equity and Liabilities
Equity
Stated capital	1,873	1,873
Retained earnings	10,881	9,891
Total equity attributable to equity holders	12,754	11,765
Non-current liabilities
Unfunded retirement benefit obligation	-	-
Deferred tax liabilities	556	574
Lease liabilities	18	32
Long term borrowings	300	324
Total non-current liabilities	874	930
Current liabilities
Trade and other payables	18,869	19,221
Lease liabilities	192	243
Current taxation	10,880	10,397
Dividends payable	-	-
Unclaimed dividends	415	389
Total current liabilities	30,356	30,251
Total liabilities	31,230	31,181
Total equity and liabilities	43,984	42,945
Net Asset Per Share	68.09	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 : 13th May 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:

Harin De Silva Wijeyeratne	Towhid Akbar
Chairman Audit Committee	Finance Director
Date :	13th May 2024		Date : 13th May 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		5,999	5,999
	Other comprehensive income	-	6	6
	Total comprehensive income for the period	-	6,005	6,005
	Transactions with owners of the Company, recognised directly in
	equity
	Write back of unclaimed dividends	-	-	-
	Dividends	-		-
	Total transactions with shareholders	-	-	-
	Balance at 31 Mar 2023 (Un-audited)
	1,873	21,625	23,498
	Profit for the period	-	21,657	21,657
	Other comprehensive income	-	(52)	(52)
	Total comprehensive income for the period	-	21,604	21,604
	Transactions with owners of the Company, recognised directly in
	equity
	Write back of unclaimed dividends	-	24	24
	Dividends	-	(33,362)	(33,362)
	Total transactions with shareholders	-	(33,338)	(33,338)
	Balance at 31 December 2023 (Audited)	1,873	9,891	11,765
	Balance at 1 January 2024	1,873	9,891	11,765
	Profit for the period	-	6,805	6,805
	Other comprehensive income	-	(8)	(8)
	Total comprehensive income for the period	-	6,797	6,797
	Transactions with owners of the Company, recognised directly in
	equity
	Write back of unclaimed dividends	-	-	-
	Dividends	-	(5,807)	(5,807)
	Total transactions with shareholders	-	(5,807)	(5,807)
	Balance at 31 March 2024 (Un-audited)	1,873	10,881	12,755

CEYLON TOBACCO COMPANY PLC

Statement of Cash Flows

(all amounts in Sri Lanka Rupees millions)

	03 months ended 31 March
	2024	2023
	Un-audited	Un-audited
Cash flows from operating activities
Profit before Tax	11,680	10,118
Adjustments for:
Depreciation & amortisation expense	149	103
Interest expense	7	7
Interest income	(340)	(458)
Write off of property, plant & equipment	-	-
Net interest on retirement benefit obligations	11	6
Provision for obsolete inventories and doubtful Debts	179	20
Exchange gain from long term borrowings	(24)	(41)
Operating profit before working capital changes	11,662	9,755
Changes in working capital
Inventories	(955)	(727)
Trade & other receivables	(1,348)	1,286
Trade & other payables	(352)	10,166
Cash generated from operations	9,007	20,480
Interest received	340	458
Interest paid	(7)	(7)
Gratuity paid - unfunded scheme	-	-
Income tax paid	(4,402)	(2,512)
WHT paid	(635)	(1,931)
Net cash generated from operating activities	4,303	16,488
Cash flows from investing activities
Purchase and construction of property, plant & equipment	(317)	(27)
Purchase of intangible assets	-	-
Net cash used in investing activities	(317)	(27)
Cash flows from financing activities
Proceeds from long term borrowings	-	-
Dividends paid	(5,154)	(16,416)
Unclaimed dividends paid	-	-
Payment of finance lease liabilities	(66)	(38)
Net cash outflow from financing activities	(5,220)	(16,454)
Net increase/ (decrease) in cash & cash equivalents	(1,234)	7
Cash & cash equivalents at the beginning of year	24,538	24,217
Increase/ (Decrease) in cash	(1,234)	7
Cash & cash equivalents at the end of the period	23,304	24,224
Analysis of cash & cash equivalents at the end of the period
Cash in hand & bank balances	17,050	17,530
Short term investments	6,254	6,694
Total cash & cash equivalents	23,304	24,224

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 twelve months ended 31 March 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 March 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 first interim dividend of Rs. 32.70 per share for 2024 and will be payable on 31st May 2024.
6. Market Price Per share

For the 3 months ending 31 March,	2024	2023
	Rs	Rs
Highest	1,235.00	708.25
Lowest	955.00	598.00
Last Traded	1,228.25	680.75

7 20 Largest Shareholders of the Company

Name of Shareholder

No. of Shares

% Holding

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 No 01

Mrs J.K.P. Singh Mr.S.P. Jayawardena Miss N. Harnam

Invenco Capital Private Limited Deutsche Bank AG Singapore A/C 02 Odyssey Capital Partners (Private) Limited Harnam Holdings SDN BHD

Deutsche Bank AG AS Trustee For JB vantage Value Equity Fund Bank of Ceylon No 1 Account

BNYM RE- GHI Holdings Mauritius Mr. J.D. Bandaranayake

Mr. J.D. Bandaranayake

Union Assurance PLC - Universal Life Fund

Galle Face Capital Partners PLC

Sub Total

Others

Total Shares

8 Computation of % of Public Shareholding

Parent Company

British American Tobacco International (Holdings) BV

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

Ms. M. Abraham Mr. S.R. Kidd Ms. R. Rahman Mr. K.D'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)

31 March 2024
157,590,931	84.13
15,585,910	8.32
3,267,374	1.74
844,387	0.45
375,961	0.20
327,698	0.17
306,256	0.16
215,111	0.11
211,030	0.11
209,635	0.11
175,600	0.09
149,883	0.08
145,000	0.08
142,883	0.08
141,887	0.08
129,687	0.07
118,412	0.06
112,450	0.06
107,307	0.06
105,000	0.06
180,262,402	96.23
7,061,349	3.77

187,323,751 100.00

31 March 2024

No of Shares

157,590,931

157,590,931

-

-

-

-

-

-

-

-

-

157,590,931

-

-

-

-

29,732,820

187,323,751

15.87%

4,503

36,519

The Company complies with option 1 of the Listing Rules 7.14.1(a) - Float Adjusted Market Capitalisation of Rs. 10.0Bn which requires no minimum public holding percentage.