McLeod Russel net profit up 61.5 percent
Friday, 30 January 2009, 02:45 Hrs
Kolkata: Tea plantation major McLeod Russel Thursday said its net profit rose 61.5 percent to 485.9 million (48.59 crore/$10 million) in the quarter ended Dec 31 from 300.9 million a year ago. The company said in a statement that its Britain-based subsidiary Borelli Tea Holdings Ltd acquired Phu Ben Tea Co. of Vietnam during the quarter. The share purchase agreement was signed with Phu Ben's parent company SA Sipef NV Dec 31, it said. Phu Ben produces nearly 4.5 million kilograms of tea out of its three factories in Vietnam. "The transaction is expected to be completed within February," the statement said. "Stock in the trade at beginning of 2008 was probably lowest in last 8-10 years. Due to lower production in Kenya and higher demand of orthodox tea prices both in Kenya and Sri Lanka, shortage has been created and this should have a positive impact on the opening season tea prices next year," McLeod said.