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Sri Lanka’s Horana Plantations Sept net up sharply on rubber boom

Nov 03, 2008 (LBO) – Sri Lanka's Horana Plantations, which is managed by the Ceylon Theatres group, said net profit for the September quarter shot up 201 percent to 50 million rupees from a year ago. Revenue rose 25 percent to 430 million rupees from 343 million rupees during the period.

The profit growth was largely drive by Horana Plantations' rubber business with only marginal growth in profits from tea and other businesses.

Rubber prices shot up to record highs earlier this year on the back of soaring oil prices, but have plunged since then as the commodities bubble burst.

Rubber prices hit 400 rupees a kilo in June at the height of the bubble but crashed to less than 200 rupees in October.

According to results released by Horana Plantations, net profits in the first half ending September 30 were up 140 percent to 58 million rupees from a year ago.