CHAIRMAN’S REVIEW
“DURING THE FINANCIAL YEAR 2019/20, MOST OF THE SECTORS IN OUR BUSINESS HAVE STAYED RESILIENT AMIDST CHALLENGES. GROUP RECORDED A REVENUE OF RS. 54 BN”
Dear Valued Shareholders,
It is with great pleasure that I present to you the Annual Report and the Audited Financial Statements of Richard Pieris and Company PLC for the year ended 31st March 2020. During the financial year 2019/20, most of the sectors in our business have stayed resilient amidst challenges in the plantations and financial services sector.
It is with great pleasure that I present to you the Annual Report and the Audited Financial Statements of Richard Pieris and Company PLC for the year ended 31st March 2020. During the financial year 2019/20, most of the sectors in our business have stayed resilient amidst challenges in the plantations and financial services sector.
As a strong customer-focused business, we take pride in offering an unmatched range of goods under one roof. Strategic capital investments are in the pipeline to upgrade infrastructure to enhance the overall shopper experience while expanding our geographical footprint by opening new outlets. During the year under review, two new outlets were opened in Wattala and Katugasthota to serve customers with greater convenience.
The Group’s Plantation Sector continued to face multiple challenges during the period under consideration including a drop in sales price, adverse weather patterns and wage hike – all of which had a major impact on the sector’s profitability. Palm oil cultivation was marred by adverse external influences on replanting. Operating the plantations sector is a huge challenge as it is vulnerable to adverse weather patterns and local and global economic shocks. However, our decades-long experience in the sector enables us to steer the sector to safety.
It is with great pleasure that I present to you the Annual Report and the Audited Financial Statements of Richard Pieris and Company PLC for the year ended 31st March 2020. During the financial year 2019/20, most of the sectors in our business have stayed resilient amidst challenges in the plantations and financial services sector.
It is with great pleasure that I present to you the Annual Report and the Audited Financial Statements of Richard Pieris and Company PLC for the year ended 31st March 2020. During the financial year 2019/20, most of the sectors in our business have stayed resilient amidst challenges in the plantations and financial services sector.
As a strong customer-focused business, we take pride in offering an unmatched range of goods under one roof. Strategic capital investments are in the pipeline to upgrade infrastructure to enhance the overall shopper experience while expanding our geographical footprint by opening new outlets. During the year under review, two new outlets were opened in Wattala and Katugasthota to serve customers with greater convenience.
The Group’s Plantation Sector continued to face multiple challenges during the period under consideration including a drop in sales price, adverse weather patterns and wage hike – all of which had a major impact on the sector’s profitability. Palm oil cultivation was marred by adverse external influences on replanting. Operating the plantations sector is a huge challenge as it is vulnerable to adverse weather patterns and local and global economic shocks. However, our decades-long experience in the sector enables us to steer the sector to safety.
Corporate Performance
Group recorded a revenue of Rs. 54 bn while delivering a Profit before Tax of Rs. 2.5 bn.
The retail sector continued to be the largest contributor to the Group. As the flagship sector of the Group, we have continuously invested in our retail operations to offer an unmatched shopping experience to our valued customers. We now have a solid platform which has been built over the years to enter a strategic phase with the aim of bringing more value to our stakeholders.
The Plastics sector has shown encouraging results despite high exposure to market sentiments which were mitigated to a large extent through new initiatives in sales and marketing, enhanced productivity and effective cost control mechanisms. The sector has taken initiatives to further penetrate into newer segments and several other strategies are in place to stimulate growth in this segment in the coming years.
The Rubber sector sustained its performance during the year under review by strategic initiatives to expand its global footprint. The company’s exports markets generated increased demand throughout the year and therefore the sector is poised to accelerate growth and capacity expansions in the near future
The contribution from the Tyre sector to Group revenue and profits remained steady in the year under consideration. We are committed to optimising manufacturing capacity to cater to emerging needs of customers while adopting a measured approach in terms of expansion.
In keeping with weak economic growth during the year, Financial Services recorded a downward trend which has spurred a restructuring exercise that is expected to yield gains.
Arpico Insurance Company continued to grow its credentials in the market, expanding its footprint with 55 branches across the country, while securing the title of the ‘Most Trusted Life Insurance Brand Sri Lanka 2019’ by Global Brands. The company was bestowed with a special award from the Indian Chamber of Commerce for ‘The Risk Management Strategy of the Year 2019’. These accolades reflect the innovative approach of the insurance arm.
At the time of writing, it appears the global economy will endure further hardships as an end to the COVID-19 pandemic is still not in sight. As a resilient Group with a profound history, we will step up and respond to each new challenge as it comes.
Future Outlook
Despite the economic headwinds faced during the year under review, the Group remains well-poised as it is aligned to key thrust sectors being promoted by the government. Considering this strategic positioning, the Group expects to bounce back no sooner the economy charts an upward growth. The conclusion of the Parliamentary elections and the resultant political stability should pave the way for greater policy consistency which will facilitate faster economic recovery.
Acknowledgements
I would like to place on record my gratitude to my fellow Directors on the Board, senior management, staff, suppliers, customers and business partners for their unstinted support through the challenging year. Notwithstanding external factors beyond our control, the Group weathered the turbulent year with resilience and fortitude, and remains optimistic about leveraging on emerging opportunities as the green shoots of economic recovery become visible.
Dr. Sena Yaddehige
Chairman/CEO/MD
25th November 2020
BOARD OF DIRECTORS
Dr. Sena Yaddehige
Chairman/ Managing Director/ Chief Executive Officer
Mr. Sunil Liyanage
Director
Mr. Viville Perera
Director
Mr. Shaminda Yaddehige
Director
Dr. Jayatissa de Costa P.C.
Director
Mr. E P I Fernando
Director
Mr. J Felix Fernandopulle
Director
Mr. Shiron Gooneratne
Director