Strong performance from Lankem amidst pandemic

Lankem Ceylon PLC has posted a gross profit of Rs.827 million in 2020/21, up by 46 per cent compared to 2019/20, the company said this week in releasing its financials for the year ending March 31, 2021.

It reported a strong Q4 performance for the FY 2020/21 recording a pre-tax profit of Rs.229 million against a loss of Rs.185 million as reported in 2019-20. The company achieved a quarterly revenue of Rs.1 billion, up by 78 percent compared to the same period last year.

Revenue was at Rs.3.4 billion in comparison to Rs.2.9 billion achieved in the previous year.

It said these results were achieved amidst the COVID-19 pandemic which disrupted markets including global supply chains. These resulted in organisations having to change their strategies placing a huge strain on operating models.

Despite these challenges, the company was able to change its strategies accordingly ensuring the right product mix was available at the right time to meet seasonal demand.

Suren

Goonawardene,

Managing

Director, Lankem

Ceylon PLC, said that the improvement in margin is a result of optimising the sales mix in addition to the stringent cost management initiatives that were implemented by restructuring the operation at their manufacturing plants. This has resulted in a drastic reduction of operational losses while the ongoing business restructuring has greatly supported company performance.

The reduction of interest rates has immensely contributed towards improved liquidity, mainly due to the accommodative monetary policy introduced by the Central Bank of Sri Lanka to support the revival of economic activity.

Founded in 1964 as Shell Chemical Company of Ceylon Ltd, Lankem Ceylon PLC is a well-diversified conglomerate reputed for its market dominance in the areas of providing Agriculture solutions, Paint manufacturer, Industrial Chemical and Pest Control. The Board of Directors of Lankem Ceylon comprises S.D.R. Arudpragasam (Chairman), A. Hettiarachchy (Deputy Chairman), A. Rajaratnam, Suren Goonewardene (Managing Director), A.C.S. Jayaranjan, R Seevaratnam, P.M.A. Sirimanne, G.K.B. Dasanayaka and Dr. A. Mubarak.

This has resulted in a drastic reduction of operational losses while the ongoing business restructuring has greatly supported company performance.