Ceylon Cold Stores PLC | Annual Report 2023/24
View this Annual Report online at https://www.elephanthouse.lk/media-hub/financial-reports/
With a legacy of over 150 years, ours is a household name that is synonymous with quality and trust. Over the years, we have thrived through ever-changing business landscapes by dynamically adapting our processes to evolving consumer preferences and market trends.
This year, we defied numerous challenges with resilience, skilfully resetting our dynamic strategies for growth, and strengthening our commitment to sustainability and corporate responsibility even further. Our dynamism and foresight have paved the way for the group to remain competitive and maintain the position as a leading Beverages and Frozen Confectionery brand while delivering superior customer service as a Supermarket chain.
We are confident that our consumer-centric approach will continue to accelerate our growth, thereby contributing to a sustainable future that creates value for our consumers and enables us to meet the evolving needs of our stakeholders.
Contents
ABOUT US
06 Our Approach to Reporting
08 Performance Highlights
12 Chairperson's Message
- CCS at a Glance
- Building Resilient Value Chain
- Value Creation Model
22 Engagement and Decision Making
24 History at a Glance - CCS
26 History at a Glance - JMSL
28 Year at a Glance
30 Awards & Certifications
34 Key Milestones
36 Board of Directors
38 Management Team
MANAGEMENT DISCUSSION & ANALYSIS
46 Materiality
48 Strategy & Resource Allocation
53 Operating Environment
58 Embedding Sustainability
60 Delivering Our Strategy
64 Capital Management
ENTERPRISE GOVERNANCE
114 Corporate Governance Commentary
164 Enterprise Risk Management
172 Independent Practitioner's Assurance Report
174 GRI Index
FINANCIAL REPORTS
182 Annual Report of the Board of Directors
190 Audit Committee Report
- Statement of Directors' Responsibility
- Independent Auditors' Report
- Income Statement
- Statement of Comprehensive Income
- Statement of Financial Position
- Statement of Changes in Equity
- Statement of Cash Flows
- Index to Notes
- Notes to the Financial Statements
281 Your Share in Detail
- Decade at a Glance
- Key Figures and Ratios
- Group Real Estate Portfolio
- Glossary of Financial Terminology
289 Notice of Meeting
291 Form of Proxy
IBC Corporate Information
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Our History
For 158 years, we have continuously evolved our products and processes and empowered our team to stay at the forefront of our business.
Our Vision
Our passion is to deliver pleasure and nutrition throughout people's lives, through exciting and superior products, whenever and wherever they choose to eat and drink.
Our Values
INNOVATION
Changing constantly, reinventing and evolving
In trying new ideas we win or learn, there is no failure.
INTEGRITY
Doing the right thing always
Transparency is everything, so we just do it right!
EXCELLENCE
Constantly raising the bar
We get better every day.
CARING
Fostering a great place to work
We listen, we are thoughtful and we care to make a difference.
TRUST
Building strong relationships based on openness and trust
The foundation we work from.
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06 Our Approach to Reporting
08 Performance Highlights
12 Chairperson's Message
- CCS at a Glance
- Building Resilient Value Chain
- Value Creation Model
22 Engagement and Decision Making
24 History at a Glance - CCS
26 History at a Glance - JMSL
28 Year at a Glance
30 Awards & Certifications
34 Key Milestones
36 Board of Directors
38 Management Team
Annual Report 2023/24 | Ceylon Cold Stores PLC
Our Approach to Reporting
Reporting Guidance
We are pleased to present our 9th Integrated Annual Report for the financial year ending 31 st March 2024 which provides a holistic, balanced and concise overview of how Ceylon Cold Stores PLC ("CCS") directed strategy to create value for its stakeholders. Serving as our primary publication to shareholders, this report shares information about internal and external factors that influence the Group's value creation process including its operating landscape, corporate governance, risk management practices, strategy, performance and the way forward among others.
Reporting Entity
This Report covers the operations of Ceylon Cold Stores PLC (CCS) and its subsidiaries Jaykay Marketing Services (Pvt) Ltd (JMSL), The Colombo Ice Company (Pvt) Ltd (CICL), and LogiPark International (Pvt) Ltd (LPIL) (collectively referred to as "Group").
Reporting Scope and Boundary
The scope and boundary of our Integrated Report is presented below. The financial and non-financial information presented in the Financial Statements and the narrative represents consolidated information unless otherwise stated. The narrative extends to include information about the operating environment that is relevant to our stakeholders. The Group operates exclusively in Sri Lanka.
Integrated Reporting Boundary
Financial and Non-Financial Reporting Boundary
Ceylon Cold Stores PLC
Jaykay Marketing Services (Pvt) Ltd
The Colombo Ice Company (Pvt) Ltd
LogiPark International (Pvt) Ltd
Customers | Employees | Value Chain | Government | Community |
Partnerships | ||||
Reporting Period
This Report covers the period from 1st April 2023 to 31st March 2024. The Group adopts an annual reporting cycle and this Report builds on our previous Report for the financial year ending 31 st March 2023.
Adapting to Developments in the Reporting Landscape
During the year, several new standards were issued that affected the preparation of our integrated Annual Report. Below, we outline the newly introduced standards and describe how we aligned our disclosures accordingly.
Standard/Regulation
How we adapted
IFRS Sustainability Reporting Standards | We are evaluating the requirements of IFRS S1 & S2 standards and |
intend to comply with them during the next reporting cycle in line with | |
the requirement set out by the Accounting Standards Committee of Sri | |
Lanka. | |
CSE Listing Rule No. 9 on Corporate Governance | Integrated into the Corporate Governance Report. |
We have complied with the mandatory and voluntary reporting standards and codes given alongside when preparing this report.
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About Us | Management Discussion & Analysis | Enterprise Governance | Financial Reports
ASSURANCE
An independent assurance on financial statements and sustainability reporting are provided by Messrs. Ernst and Young Chartered Accountants.
FINANCIAL STATEMENTS AND REPORTING
Sri Lanka Financial Reporting | Sri Lanka Accounting and Auditing |
Standards | Standards |
NARRATIVE REPORTING |
CHANGES TO REPORTING
There were no major changes to the Group's size, shareholding, structure or supply chain during the year under review. There were no major restatements of non-financial information disclosed in our previous Annual Report.
IMPROVEMENTS TO THE REPORT
Integrated Reporting Framework | Sustainable Development Goals |
GRI Universal Standards | |
CORPORATE GOVERNANCE | |
Code of Best Practice on | Securities and Exchange |
Corporate Governance | Commission of Sri Lanka Act |
Listing Rules of the Colombo | No. 36 of 1987 |
Stock Exchange |
1 | Aligning Corporate Governance reporting |
to the new developments | |
2 | Obtaining external assurance on |
sustainability reporting | |
NAVIGATING OUR REPORT | Navigation Icons | ||
The Capitals | Our Stakeholders | Strategic Priorities | |
Intellectual Capital | Customers | Sustainable Growth | |
Financial Capital | Employees | ||
Fulfilling the Customer | |||
Investors | Promise | ||
Human Capital | |||
Distributors / Retailers | Empowered Team | ||
Social & Relationship Capital | |||
Suppliers | |||
Manufactured Capital | Managing the Value Chain | ||
Government & Regulators | |||
Natural Capital | Communities | Sustainable and | |
Responsible Organisation | |||
STATEMENT OF BOARD RESPONSIBILITY
The Board of Directors is ultimately responsible for ensuring the integrity of this Report. The Board hereby confirm that the 2023/24 Annual Report addresses all relevant material matters and fairly represents the Group's integrated performance, and we also confirm that the Report has been prepared in line with the guidance set out in the Integrated Reporting (IR) Framework.
The Report is approved and authorised for publication.
Signed on behalf of the Board,
FEEDBACK
Krishan Balendra
We understand Integrated Reporting is an evolving principle and a continuous journey of improvement. We welcome your comments,
Nelindra Fernando
Director / Chief Financial Officer
Ceylon Cold Stores PLC
Chairperson
suggestions and queries on this Report; please
direct your feedback to,
148, Vauxhall Street, Colombo 02.
Email: Nelindra.ccs@keells.com
20th May 2024
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Annual Report 2023/24 | Ceylon Cold Stores PLC
Performance Highlights
SNAPSHOT OF 2023/24
Operating Environment
Macro-economic stabilisation and gradual recovery of economic conditions.
Gradual uptick in consumer demand.
Upward revisions to VAT, tax on sugar and excise duty.
Implications of climate change on supply chains and demand dynamics.
Strategic Priorities
Future focused the Beverage portfolio through the acquisition of a PET bottling and can manufacturing plant in Ittapana.
Emphasis on expanding value enhancing propositions.
Innovations in the Frozen Confectionery range.
Proactively monitored and minimised our environmental footprint.
Improvement of business performance by leveraging on advance data analytics.
Enhancing customer service with innovations in product and service offering in the Supermarket business.
Way Forward
Ongoing emphasis on enhancing our customer value proposition in line with evolving needs.
Expand our supermarket footprint.
Ongoing efforts to harness the strength of digital platforms and technologies to maintain our competitive edge.
Strategic focus on minimising our environmental footprint.
Metric | 2023/24 | 2022/23 |
YoY Change
STRATEGIC PRIORITY: SUSTAINABLE GROWTH | |||||
Financial Performance | |||||
Revenue | Rs. million | 139,625 | 126,149 | 11% | |
Gross Profit | Rs. million | 17,497 | 12,749 | 37% | |
Operating Profit | Rs. million | 8,155 | 6,185 | 32% | |
Profit | Before Tax | Rs. million | 4,931 | 2,239 | 120% |
Profit | After Tax | Rs. million | 3,427 | 2,513 | 36% |
EBITDA | Rs. million | 12,638 | 10,380 | 22% | |
Financial Position | |||||
Total Assets | Rs. million | 73,744 | 71,730 | 3% | |
Total Liabilities | Rs. million | 53,293 | 52,653 | 1% | |
Total Debt | Rs. million | 16,836 | 22,516 | -25% | |
Shareholders' Funds | Rs. million | 20,451 | 19,077 | 7% | |
Return on Assets | % | 4.71 | 3.72 | 0.99 | |
Return on Capital Employed | % | 16.17 | 12.54 | 3.63 | |
Debt/Equity | % | 82.32 | 118.02 | (35.70) | |
Interest Cover | No. of times | 2.43 | 1.51 | 0.92 | |
Working Capital | |||||
Current Assets | Rs. million | 23,429 | 22,430 | 4% | |
Current Ratio | No. of times | 0.66 | 0.68 | (0.02) | |
Quick Ratio | No. of times | 0.27 | 0.20 | 0.07 | |
Shareholder Information | |||||
Earnings per Share | Rs. | 3.61 | 2.64 | 0.97 | |
Dividends per Share | Rs. | 1.87 | 1.19 | 0.68 | |
Net Asset Value per Share* | Rs. | 21.52 | 20.07 | 1.45 | |
Closing Share Price | Rs. | 53.90 | 40.00 | 13.90 | |
Price Earnings Ratio | No. of times | 14.95 | 15.13 | (0.18) | |
Dividend Payout | % | 51.84 | 44.91 | 6.93 | |
Dividend Yield | % | 3.47 | 2.97 | 0.50 | |
Market Capitalisation | Rs. million | 51,227 | 38,016 | 35% | |
Enterprise Value | Rs. million | 77,282 | 69,895 | 11% |
*Net asset per share has been calculated, based on the number of shares in issue as at 31st March 2024.
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Ceylon Cold Stores plc published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 03:45:09 UTC.