The Ceylon Brewery Ltd., which has consolidated the results of its subsidiary, The Lion Brewery Ceylon Ltd., into its accounts in the current financial year has performed extraordinarily well in the first quarter with a pre-tax profit of over Rs. 100 million in the three months ending June 30, 1998.

Carsons Management Services (Pvt.) Ltd. who manage the Brewery have said that Lion had begun beer sales from June 1. Although sales have commenced, Lion has not yet taken over its new plant from the turnkey suppliers as final acceptance tests are pending. These are expected to be completed this month and once this is done, Lion's commercial operations will be in "full swing'', Carsons Management said.

On a consolidated turnover of Rs. 341.6 million (of which Rs. 282 came from the Ceylon Brewery), a pre-tax profit of Rs. 100.2 million had been achieved. The Ceylon Brewery component of this profit was Rs. 72.6 million, over double the Rs. 33.7 million earned a year earlier.

The managers said that they would not be charging depreciation on the Lion plant in the first year. Also, since the transition of production between Nuwara Eliya (where the original Ceylon Brewery plant is located) and Biyagama which is Lion's home has not been completed as at June 30, "the results of the following quarters may reflect a reduced level of profit.''

The managers used the platform offered by the interim statement to say that the proposed national alcohol policy, though well intentioned is poorly targeted. It stressed that the country's primary alcohol concerns relates to illicit liquor, but the new policy will impact only on legitimate manufacturers.

"The hand of the illicit manufacturers will be unavoidably strengthened if the proposed alcohol policy is implemented in its current form. As a result, Sri Lanka's alcohol problems will increase as a direct consequence of the proposed policy. If Sri Lanka is to extricate itself from the menace of illicit liquor, the soft alcohol industry must be allowed free market conditions in which to operate be it is terms of price, distribution and advertising,'' the managers said.

"In this process, it is also essential that the soft alcohol industry plays a responsible role and refrains from targeting its products to those below the legal drinking age. As a company we have upheld this principle voluntarily and will continue to do so in the future as well.''