Annual Report 2010-2011 - Colombo Stock Exchange

Chairman’s Review
Retail
The retail sector continued to be the value driver of the
group, representing 40% of consolidated revenue and 21% of
earnings before interest and tax. The sector posted revenue of
Rs. 10,926 mn in 2010/2011, compared to Rs. 9,043 mn in the
preceding year, while segment profit was recorded at Rs. 828
mn. As mentioned in the last Annual Report, an aggressive
and accelerated expansion of the chain of outlets continued
to operate in targeted areas of the country, with the aim of
capitalizing on the post war economic boom. Consequently,
the sector performed well by increasing its turnover by 21%
and profitability by 61%. The results generated demonstrate
the potential of the retail industry, specifically for the Company
and in general for Sri Lanka, for future growth. The steady
improvement of the post-war Sri Lankan economy has created
a positive sentiment on consumer confidence, which in turn has
driven retailing in the country. This positive trend is expected to
continue in the coming year as well.
Plantations
The Financial Year 2010/2011 was an impressive year for the
plantations sector where earning before interest and tax (EBIT)
grew 147% to 2,032 mn. Plantations were the highest earner
for the group, accounting for over 51% of the group profits and
28 % of the group revenue.
Plantations were
the highest earner
for the group,
accounting for over
51% of the group
profits and 28 % of
the group revenue.
Being the largest rubber producing Plantation Company in the
country, Kegalle Plantations produced 4,082 metric tons of
rubber during the year, which constituted 2.7% of the national
production.
At national scale too plantation sector recorded a successful
year, with an outstanding contribution to the National GDP,
despite hampered production due to adverse weather. Tea and
Rubber crops contributed 4.34% and 3.78% respectively at the
national level in the year of review.
Interest Rates - AWPLR
Rs. Bn.
21.00
19.00
17.00
15.00
13.00
11.00
9.00
7.00
5.00
April
May
June
July
August
September
October
November
December
January
February
March
2009
2010
Richard Pieris and Company PLC | Annual Report 2010/2011 10