Business
Tokyo Cement Group announces FY22 Q2 results
Tokyo Cement Group (Tokyo Cement) reported its results for the second quarter ended 30th September 2021, with a turnover of Rs. 11,885 Mn reflecting a Year-on-Year growth of 4%, compared to Rs. 11,413 Mn during the same period last year.
Overall, Tokyo Cement’s sales volumes have reduced by 3% compared to the second quarter last year, due to the shortages and delays in the supply chain of raw materials.
The Group recorded Rs. 173 Mn profit before tax for the second quarter against Rs. 2,277 Mn for the same period last year, whilst recording a profit after tax of Rs. 132 Mn as against Rs. 2,104 Mn during the same period last year.
This sharp decline in profitability was a result of increasing raw material price, currency depreciation and exploding freight costs that significantly increased the cost of production. In addition, all other overhead costs increased throughout the financial year further impacting the bottom line.
Even though Tokyo Cement was operating at maximum capacity, a shortage in cement supply was experienced in the market during this period. The Maximum Retail Price imposed on cement prevented free market forces from freely adjusting to keep up with the volatility of macro-economic conditions. These matters and other outlining reasons were brought to the attention of the Consumer Affairs Authority.
The Environment
In order to curb the spread of the pandemic, a countrywide lockdown was declared from 20th August till 1st October, slowing down most local economic activity for forty-two days.
Throughout the quarter as mentioned above, shortages and delays in imported raw materials persisted due to intermittent operational shutdowns of supplier facilities and ports, a scarcity of vessels, and other supply chain challenges arising out of the pandemic. The fuel price increase and unavailability of vessels escalated inbound freight rates by over 300% within a very short period. Further, considerable delays occurred in opening LCs with the banks, wherein a process that typically happened on the same day now takes several weeks.
The cost of clinker continued to increase in line with coal prices, as demand outstripped supply. The value of the Sri Lankan rupee depreciated when compared to the same period last year, compounding upon sharp price hikes of imported raw materials including clinker and paper for bags.
Due to heightened fiscal barriers, cement importers drastically cut down or completely halted importation thus resulting in a market shortage. To compensate the market gap, Tokyo Cement increased efficiencies to maximize the installed local production capacity to fulfill the demand.
Market Review
Towards the end of the quarter a cement shortage occurred in the market due to multiple reasons beyond the control of the manufacturers. Pandemic related travel restrictions and nonavailability of transportation hindered customers from collecting finished goods from factories and warehouses, further slowing down market movement. Retailers were hesitant to hold stocks for longer periods due to lockdowns, while the overall economic conditions deterred them from blocking their cashflow on cement that had a MRP with very low margins compared to other construction materials.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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