corporate

Unilever records double-digit growth

Despite the tough economic environment in 2008 with inflation reaching record highs, Unilever Sri Lanka delivered outstanding results on all fronts of the business. The company achieved its seventh consecutive year of double-digit growth and maintained its overall market dominance.

In 2008, the retail business which includes brands such as Sunlight, Signal, Astra and Lifebuoy, recorded an impressive 20%+ growth whilst the turnover from its tea export business recorded a growth 17%.

Using sharply targeted micro-marketing initiatives, Unilever was able to gain market share in key categories and channels and thereby, maintain its overall market dominance. The impact of cost increases were mitigated to a great extent through an aggressive cost effectiveness drive, thereby minimising the burden to consumers.

Nevertheless, the high inflation and the challenging economic conditions led to some dilution in profitability.

On the product marketing front, Unilever again recorded significant gains.

Sunlight, the flagship brand of the company, for the first time in its history recorded a sales turnover of Rs. 5 bn. Commenting on the company’s future plans in the face of a potentially even more difficult and challenging year ahead, Chairman Unilever Sri Lanka Amal Cabraal, said, “Our single minded focus is on growth but this year more than in any of the previous years, we will have to declare a ‘war on costs’.

The medium term goal is to make Unilever Sri Lanka, a Rs. 30 billion company by the year 2010, which will make it 5 times bigger than what it was in the year 2000.

This drive will continue to be based on our growth mantra; growth of our brands, the growth of our people and the growth of our links with the community we serve”. “In 2009, Unilever Sri Lanka completes 70 years of manufacturing presence in Sri Lanka.

This milestone will be a great opportunity for us to recommit to operations in Sri Lanka and to ensure our vital presence in this nation for another 70 years and more”, he said.

LB Finance posts 106% profit increase for 9 months

The financial figures for 2008/09 explicates LB Finance’s rapid growth in the industry, with the Company doubling profits, recording a profit before tax of Rs. 419 million for the 9 months ending December 31, 2008 and this is a 106 per cent increase from the last parallel period.

The company also posted a net interest income of Rs.844 million and total revenue of Rs. 2.6 billion which is significant augment of 30 per cent over the last year.

The total assets of the Company rose from Rs.10.7 billion to Rs.14.4 billion due to the expansion of lending activities of which 96 per cent are earning assets. Lending chiefly comprised lease and hire purchases, of which Rs. 9.4 billion was secured through Vehicle Leasing and Hire Purchase.

Real Estate stock amounted to Rs. 221 million at the end of the period. A notable expansion in its pawning operations increased Company pawning advances to an impressive Rs. 1.9 billion as at Dec. 31, 2008. 98 per cent of all earning assets are said to generate regular cash flows.

The Company’s gross NPL ratio which stood at 3.86 per cent as at end-Dec. 2007 improved to 3.39 per cent as at Dec. 31, 2008, well below the industry ratio. The provision for bad debts for the period reduced to Rs. 15 million, 85 per cent less than the Rs.104 million provision for the 9 months ending December 31, 2007.

JKH Group revenue increase by 7 per cent

Group revenue for the nine months ended 31 December 2008 increased by 7 per cent to Rs. 31.1 billion. Profit before tax for the nine months ended December 31, 2008 decreased by 4 per cent to Rs. 3.9 billion.

The consolidated net profit of JKH for the nine months of FY 2008-09 decreased by 19 per cent to Rs. 2.6 billion.

At a JKH Company level, profits after tax for the nine months of FY 2008-09 increased by 132 per cent to Rs. 4.0 billion. The group performance was affected by the one-off charges in additional taxes and write-offs at Lanka Marine Services (LMS).

The company completed its share repurchase of a total of 25,499,999 shares amounting to Rs. 2,295 billion in December 2008.

In addition to the 1st interim dividend of Rs. 1.00 per share paid in October 2008, a 2nd interim dividend of Rs. 1.00 per share for the financial year ending 31 March 2009 was declared in January 2009.

Virtusa announces strong third quarter

Virtusa Corporation a global information technology (IT) services company that provides IT consulting, technology implementation and application outsourcing services through an enhanced global delivery model, today reported financial results for the third quarter of fiscal year 2009, ended December 31, 2008.

Third Quarter Fiscal 2009 Financial Results are Revenue increased 6% year-over-year and 2% sequentially, to $44.9 million in the third quarter of fiscal 2009. On a constant currency basis, third quarter revenue increased 10% year-over-year and 5% sequentially.

Virtusa reported income from operations of $5.4 million for the third quarter of fiscal 2009, compared to $5.9 million for the third quarter of fiscal 2008 and $0.7 million in the second quarter of fiscal 2009.

On Ceylon Continental hotel board

Prasanna W. Jayewardene now Chairman of Eastern Development Enterprises (Pvt) Limited and Pasekudah Tourism Development Association, who also was the Founder Chairman of Elephant Corridor Hotel has been appointed to the Board of Hotel Services (Ceylon) PLC, owning Company of Ceylon Continental Hotel.

Prasanna Jayewardene has been on the boards of Pegasus Reef Hotel, Mount Lavinia Hotel, Galle Face Hotel, Browns Beach Hotel, Lihiniya Surf Hotel, Hotel Hantana, Palm Beach Hotel and Catamaran Beach Hotel in Sri Lanka as well as having been Director General of the Ceylon Hotels Corporation.