[ Corporate]

Kotmale PLC profits record an all time high

Kotmale Holdings PLC recorded a massive jump in profits recording a net profit growth rate of 577% for the year 2008-2009. Market sources say this profit surge is due to the Company's pro-active initiative to meet all challenges in the current macro-economic environment. Director CEO of Kotmale Holdings PLC, Jude Fernando said that one of the reasons for its success is the sustainable model adopted by the Company in the product mix, which covers a wide variety of liquid-milk based products and also imported milk powder.

Kotmale Holdings PLC purchases over 10 million litres of milk annually from some 7000 local dairy farmers in the Central Province. The Group has a close bond with the upcountry dairy farming community and has been instrumental in improving their livelihood by rendering assistance to farmers on a regular basis, especially through the introduction of more scientific methods and counsel on breeding, feeding and caring of cattle; becoming recognized as one of the best locally owned dairy companies in Sri Lanka to support the farmer and contribute significantly to boost local milk production.

The Group achieved a revenue of Rs. 1.35 billion for the year ended March 31, 2009 compared to Rs. 1.57 billion for the 15 month period ended 31st March, 2008.

They recorded an impressive profit after tax of Rs. 63.52 million for 2008-2009 as against Rs. 4.93 million for the 15 month period ended 31st March, 2008.

The Kotmale Dairy Group established in 1979, manufactures an extensive range of dairy products which includes ice cream, cheese, UHT long life milk, pasteurized milk, yoghurt, non-fat yoghurt, curd, fresh cream and ghee.

Kotmale is a much sought-after brand, despite competition from larger multi-national and local dairy companies. The Group employs over three hundred staff in three manufacturing plants and several milk collection centres.

The Colombo plant produces icecream, yoghurt, non-fat yoghurt, pasteurized milk and UHT long life milk, and the Kalutara plant handles the packaging and distribution of milk powder, which is imported from New Zealand. The Kotmale Group is one of the largest producers and sellers of pasteurized milk in the country as this is the preferred product among schoolchildren, mainly due to its creamy, wholesome taste.

Moreover, the Kotmale Group has the distinction of being one of the few dairy manufacturers in the country to use only fresh milk and fresh cream as principal ingredients in its icecream, which also includes the special high-end signature range.

The cheese factory is located in the upcountry regional area of Patana. With a thirty year old tradition in cheese-making, the Group prides itself as being one of the oldest and most reputable manufacturers of some of the finest cheeses in Sri Lanka, all produced using pure, upcountry farm-fresh milk.

At present, Kotmale has a distribution network covering most parts of the country, with the exception of certain areas in the Northern and Eastern provinces.

The Company is working towards establishing islandwide distribution and availability to allow even more consumers to savour their products.

"With the end of the 25 year conflict, opportunities in the North and East will emerge and the expected resurgence of the tourism industry will herald an era of change that will enable the Company to achieve growth in the liquid milk-based product range", Jude Fernando concluded.

NSB Annual Report among the world's best

The National Savings Bank of Sri Lanka (NSB) Annual Report for 2008 won a coveted grand award in addition to 3 Gold awards and a Bronze award at the recent International ARC Awards held in New York.

NSB put Sri Lanka on the global corporate map at the gala awards presentation attended by top executives of some of the foremost companies in the world including the Fortune 500s and the FTSE 100s.

The ARC Awards are popularly referred to as the Oscars of Annual Reports. They are the most sought after awards for annual reports. Held for the 23rd year, this year ARC attracted 1,800 entries from around the world.

Only the top 25% of the highest scoring annual reports become eligible for any award.

Gold and Silver Awards are not automatic in every category unless the contenders meet the required standard.

The best of the Gold Awards are nominated for Grand Awards which represent the best-of-the-best from around the world.

NSB's General Manager/CEO, Sunil Perera and Additional General Manager, Hennayake Bandara received the awards on behalf of the Bank. Dr. Vijith Kannangara, Chairman of Smart Media - The Annual Report Company, was also present.

Master of Ceremonies Charles Payne of FOX Business Network was at hand to present the top awards. In his keynote address, Payne pointed out that more than any other time in history, today companies need to make them better understood.

And the annual report remains the prime tool for doing so in a timely, consistent, transparent and credible manner.

ARC Awards has been established to honour outstanding annual reports. The panel of judges consists of distinguished personalities from the communications and financial analyst industries mainly from North America, Continental Europe and UK.Commenting on the award, NSB's Additional General Manager, Hennayake Bandara said that 'it is not possible to develop an annual report to such a high international standard in a single year.

We have been working on improving the overall standard of the annual report over the years.

The Institute of Chartered Accountants of Sri Lanka's competition for the Best Annual Report was our starting point and gave our report a very good foundation. After winning in this local competition, our report became the first report of a public sector organization in South Asia to win a "Best Annual Report Award" in the category of public sector, in the regional competition organized by South Asian Federation of Accountants (SAFA).