Ceylon Cold Stores : Annual Report 2023/24

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

1. CCS at a Glance
2. Building Resilient Value Chain
3. 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

1. Statement of Directors' Responsibility
2. Independent Auditors' Report

1. Income Statement
2. Statement of Comprehensive Income
3. Statement of Financial Position
4. Statement of Changes in Equity
5. Statement of Cash Flows

1. Index to Notes
2. Notes to the Financial Statements

281 Your Share in Detail

1. Decade at a Glance
2. Key Figures and Ratios

1. Group Real Estate Portfolio
2. 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

1. CCS at a Glance
2. Building Resilient Value Chain
3. 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: [e-mail]

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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