Shareholder

Consolidated Revenue

• Revenue growth driven by strong contributions from Consumer & Retail and Transportation & Logistics sectors
• Growth in the domestic businesses countered the adverse implications of the appreciation in the exchange rate which impacted the export-oriented sectors

Earnings Before Interest & Tax

• Driven by improved profitability in Consumer & Retail and Transportation & Logistics sectors
• Notably the Leisure Sector which had incurred a Loss Before Interest and Tax recorded strong turnaround at EBIT level.

Profit Before Tax

• The Consumer & Retail was the largest contributor to PBT with a share of 15%, followed closely Transportation & Logistics (15%), Purification (13%), Hand Protection (9%), Textiles (7%) and Projects & Engineering (8%)

Total Assets

• Asset growth was supported by investments across several key sectors including Transportation & Logistics, Purification, Hand Protection, Textiles and Construction Materials
• Current asset growth of 14% driven by an increase in Trade & Other Receivables

Borrowings

• Debt profile is dominated by Consumer & Retail, Transportation & Logistics and Others Sector
• Borrowings funded 40% of the Group’s Total Assets

Eco Solutions

• Performance impacted by appreciation in Sri Lankan Rupee and escalation in raw material costs, which led to a reduction in Revenue and  implications on margins
• Investments in backward integration through investments in a fibre-extraction facility
• Continued investments in value-added products

Hand Protection

• Resilient performance backed up volume growth and penetration in new and existing markets
• Expansion of manufacturing footprint with the acquisition of Hi-Care Thai Gloves Co., Ltd and manufacturing expansion of Hanwella facility
• Strengthening global presence through establishing marketing arms

Purification

• Revenue remained relatively unchanged due to the appreciation of the Sri Lankan Rupee, while Profit Before Tax moderated mainly due to margin contraction from rising coconut-shell charcoal prices in global markets
• The Sector continued to pursue increased contributions from value-added products and geographical expansion
• Strategic emphasis on strengthening supply chain security and resilience through backward integration and diversification of supply chains

Textiles

• Performance impacted by decline in volumes stemming from the deferment of orders from a major customer and appreciation of the Sri Lankan Rupee
• Strategic emphasis on brand diversification with the addition of several exciting, fast-growing brands to the portfolio
• Ongoing focus on transitioning from basic, conventional, cotton-based fabrics to premium, value-added products

Construction Materials

• Performance upheld by uptick in residential demand and strong growth in export volumes
• Strengthened manufacturing footprint with the commissioning of Ascend- an advanced facility featuring cutting-edge technology and invested in improving technological capabilities
• Successfully obtained the Aluminium Stewardship Initiative (ASI) certification

Plantations

• While Revenue increased led by growth in crops and prices, profitability was impacted by the sharp increase in wages and other costs
• Talawakelle Tea Estates commissioned a state-of-the art tea factory in Kiruwanaganga
• The three RPCs continue to lead the industry in sustainability, innovation and quality, emerging as top price takers in the Colombo Tea Auction.

Agriculture

• The Sector delivered a resilient performance, through leveraging the diversity of its businesses geographical footprint and global partnerships.
• Continued focus on expanding product offering in Bangladesh
• Diversification of business lines with the entry into frozen coconut water

Consumer & Retail

• Singer achieved record-breaking profitability during the year supported by the more conducive market conditions and timely market activations across its network
• Widened the product and brand portfolio while pursuing diversification of customer segments
• Ongoing focus on upgrading showrooms and enhancing the customer experience

Leisure

• Sector’s overall performance was upheld by the record-breaking profitability of the Sri Lankan properties, with all four properties generating profits for the first time. Overall profitability however, continued to be impacted by Amaya Kuda Rah Maldives,

Industry Inputs, Power & Energy

• Sector delivered commendable performance during the year, reflecting improved profitability in both Industry Inputs and Power & Energy clusters
• Secured a tender to construct and operate a 4MW ground-mounted solar project
• Industrial Raw Materials performed well during the year, reflecting increased contributions from value-added products.

Transportation & Logistics

• The Sector recorded significant improvements in Revenue and Profitability supported by more conducive conditions and broad-based improvements across clusters
• Strategic focus on establishing the geo-product organisational structure for focused regional expansion
• Expansion of the marine fleet with the addition of 3 vessels during the year

Projects & Engineering

• The Sector’s overall performance moderated due to the global decline in solar panel prices, although the Sector maintained its leadership position in solar EPC segment
• Secured a contract to develop a 50 MW wind power plant in Mannar, along with 37 ground-mounted solar projects amounting to 149 MWM
• Partnered with BYD, the global leader in Battery Energy Storage systems, to launch advanced energy storage and inverter solutions in Sri Lanka

Tea Exports

• Despite a growth in Revenue, both companies recorded a moderation in profits reflecting the appreciation of the exchange rate
• The Sector pursued geographical diversification while Mabroc’s Kenyan subsidiary which completed its first full year of operations demonstrated encouraging results

Economic

• Reduce dependency on domestic market through expanding export-orientation
• Maintain strong relationships with stakeholders, lobby groups and banks

Liquidity and financial stability

• Improve liquidity risk oversight by Board and GMC
• Derive Group synergies to manage borrowings
• Diversify funding sources

Geopolitical risk

• Pursuing increased diversification of export markets, particularly in non-traditional markets
• Focused growth in selected markets
• Value-added product propositions which are relatively price

Data protection and cybersecurity risks

• IT governance policies and structures in place
• Regular employee awareness on mitigating cybersecurity risks
• Robust Business Continuity Plan in place

Physical risks of climate change

• Close monitoring of weather patterns and potential impacts
• Climate adaptation measures
• Strengthen environmental management systems through certifications

Transitional risks of climate change

• Close engagement with customers on identifying and responding to sustainability-related demands
• Gradual transition to renewable energy sources
• Environmental targets centered on emission reductions, water consumption and waste management