Tokyo Cement reports 31% jump in turnover

Tokyo Cement has reported a 31 per cent YoY increase in turnover to LKR16,158m (US$45m) in the fourth quarter of its financial year, ending 31 March 2022. Compared to the same period a year earlier, sales volumes declined by 11 per cent due to a breakdown at one of the company's grinding mills and the lack of availability of raw materials. For the current financial year as a whole, the company’s sales volumes improved by just one per cent, while turnover saw YoY growth of 22 per cent to LKR52,477m, according to Daily News (Sri Lanka).  

The fourth quarter of the financial year saw raw material costs surge in line with global prices, compounded by rising freight costs and oil prices. The price of a 50kg bag of cement was adjusted to reflect these cost increases accordingly. Tokyo Cement has reportedly taken drastic cost-saving measures, streamlined operations and postponed capital expenditure due to the challenging environment, as well as reforecasting demand and adjusting cashflow.