Browns booms to Rs. 3.1 b profit

The Browns Group has posted for the first time in history a Profit before Tax of Rs.3.3 billion up 319% compared with the same period last year and a Net Profit of Rs.3.1 billion for the same period.

The Group also posted a revenue of Rs.9.749 billion for the period ending 31 December 2010 which was an increase of 49% as against the same period last year.

Group CEO and Managing Director Murali Prakash said: “Our results clearly justify our strategy of growing our core business of trading and manufacturing whilst being a strategic investment vehicle in order to be a future oriented business entity. This dual strategy has enabled us to deliver these exceptional results.”

Speaking further he said the Group’s success lies in the unique blend of entrepreneurship and professionalism together with a clear focus on our key customer segments, which is backed by a dedicated and professional team of managers and staff.

The Browns Group is one of the few organisations to have market leadership in 7 segments they operate in. These include Tractors with 70%, Marine Engines 65%, Battery with 60%, Branded Power tools 51%, Radiators 42%, Vet Pharma with 37% and Integrated Business Solutions with 30% market share. Strong focus on brands, channels and customer value has helped the Browns Group achieve substantial growth in its trading and manufacturing divisions.

In the Financial sector The Browns Group has acquired a 9.55% stake in Seylan Bank Plc and holds a stake of 6.9% in Hatton National Bank Plc thus strengthening its presence in this sector.

In the Plantation sector, the Group through its subsidiary Browns Investments has acquired Maturata and Pussellawa Plantations in collaboration with Taprobane Holdings and has made significant post-consolidation contribution to the bottom line. There are 31 tea estates and 9 rubber estates belonging to the above plantations. The Company’s subsidiary Melfort Green Tea Factory is a pioneer in green tea manufacture in Sri Lanka.

The company continued to provide management input through the 49% stake held in Galoya plantations by the consortium (Brown & Company Plc and Lanka Orix Leasing Company Plc) as a part of the public private partnership initiated with the Government to revive the sugar industry. This strategic investment is well under way to become fully operational by 2012.

In the Tourism and Leisure sectors the Browns investments staked a 30% claim in LOLC leisure which in turn now controls the Confifi group of hotels. The hotels of LOLC namely Palm Garden, Riverina, Eden and Tropical Villas have significantly improved in performance during the 3rd quarter. A major refurbishment of these hotels is planned to take place shortly. This would result in LOLC Leisure being in a very strong position to capitalise on the post conflict tourist bloom

The Browns Group along with Lanka Orix Leasing Company acquired a 20% stake in Sierra Constructions Pvt. Ltd. in October 2010 as well as an additional 20% in Sierra Holdings Pvt. Ltd. in January this year. The Sierra Group’s business activity encompasses construction, telecommunication, cabling, leisure and agriculture. The Sierra Group is positioned to benefit from the construction boom that is beginning to take place in Sri Lanka.

The Browns Group through its associate Taprobane Holdings Ltd. acquired a majority stake in Royal Fernwood Porcelain Ltd, a manufacturer and exporter of porcelain ware.  Subsequent to acquisition Browns continues to carry out restructuring as well as process improvements. Additionally, the strategy of repositioning the products as well as moving into new markets is underway.

The Company’s investment into Hydro power Through Free Lanka limited continued to show good results. Two hydro power plants namely Delta and Sanquhar which are operational generate a capacity of 3.2 MW. The new hydro power plants in the pipeline would further generate a capacity of 5 MW when in operation.
The Browns Group said it will continue with its journey in keeping its core competencies of engineering excellence, customer care and the Heritage of Trust that the Organisation has been built up on.

The Brown and Company’s Board of Directors comprises Rohini Nanayakkara (Chairperson), Ajith Devesurendra (Deputy Chairman), Murali Prakash (Group Managing Director/CEO), I.C. Nanayakkara,  Shanker Somasunderam, R.N. Asirwatham and Janaka de Silva.

source - www.ft.lk