Tokyo Cement (Lanka) reports 20% increase in revenues

Tokyo Cement (Lanka) reports 20% increase in revenues
10 February 2022

Tokyo Cement Group reported a 20 per cent advance in its turnover to LKR13.771bn (US$68.1m) for the third quarter ended 31 December 2021 when compared with LKR11.456bn in the 3QFY21-22. Profit for tax during the 3QFY21 grew by 38 per cent YoY to LKR1.986bn in the 3QFY21-22. Profit after tax reached LKR1.649bn, up from LKR1.303bn in the 3QFY20-21.

However, sales volumes fell by three per cent as the company saw shortfalls in the supply chain, including the breakdown of a cement mill for more than two weeks towards the end of the third quarter. To ensure an uninterrupted supply to the market during times of reduced output, Tokyo Cement (Lanka) increased cement imports by 20 per cent YoY, both in bulk and bagged form. Despite the challenging market environment, the company maintained its 35 per cent market share in the 3QFY21-22.

Going forward, the company is confident that it will be able to maintain domestic production levels to ensure an uninterrupted supply. To foster this future growth also started two strategic business expansion projects in the 3Q21-22. It laid the foundation for its 1Mta expansion project, which is expected to be completed by 2023 and increase total cement capacity to 4Mta. A second project saw the start of trial runs of the Tokyo Cement Colombo Terminal expansion, due to enter service in the 4QFY21-22. The terminal expansion is expected to increase its total bulk cement import, packaging and distribution from 0.6Mta to over 1Mta.

Published under Cement News