HNB Assurance records excellent growth in Q1, 2014: Highest ever GWP in Q1

HNB Assurance PLC lived up to its reputation as the fastest growing insurer in Sri Lanka by recording a growth of 24% in its turnover measured by Gross Written Premium in the quarter ended 31st March 2014. Its Life Insurance GWP grew by 34% outpacing the Life Insurance market which grew by only about 10% in the first quarter of 2014. The Company’s achievement in the General Insurance sector was equally impressive as it recorded a growth of 16% while the General Insurance market recorded a decline by about 1%.

The combined GWP of Rs. 1.14 Billion achieved in the quarter turned out to be the highest ever recorded by the Company in a single quarter. The combined GWP achievement of Rs. 538.3 Million in the month of March also established a new record as the highest ever GWP recorded in a month.

According to Manjula de Silva, Managing Director of HNB Assurance, "this outstanding achievement is attributed to the renewed focus and energy with which the two recently segregated Life and General distribution teams commenced their operations". He is hopeful that the momentum built during the first quarter will be carried through during the entire year enabling the Company to end its last year as a composite Company on a high note.

The Company was also able to deliver an 8% growth in its Profit After Tax. The profit declared for the period of Rs. 53.9 Million is derived entirely from the General Insurance business as the Company recognizes a profit from Life Insurance only after the year – end actuarial valuation is completed.

HNB Assurance PLC is one of the fastest growing Insurance Companies in Sri Lanka with a network of 51 branches. HNBA is a composite Insurance company with a rating of A (lka) by Fitch Rating Lanka for "National Insurer Financial Strength Rating" and "National Long- term Rating". HNBA is also rated within the Top 100 Brands and Top 100 companies in Sri Lanka by LMD and HNB Assurance recently won International awards for Brand Excellence and HR Excellence and also won many awards for its Annual Reports at the Award ceremonies organized by the Institute of Chartered Accountants of Sri Lanka, ACCA Sri Lanka (Association of the Chartered Certified Accountants) and SAFA (South Asian Federation of Accountants)
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John Keells Holdings' 'Cinnamon Red' business hotel on track

May 31, 2014 (LBO) - John Keells Holdings said its 'Cinnamon Red' business hotel in Sri Lanka's capital Colombo will open during the current financial year.

The 240-room building is now under construction and will be managed by the group.

JKH told shareholders in the annual report that all its hotels will be branded 'Cinnamon' during this year.

Cinnamon Hotels and Resorts will then have 14 hotel properties and over 2,400 rooms.

Sri Lanka has reported arrivals of 1.27 million in 2013 up 26 percent from a year earlier. Arrivals were also up 24 percent to 421,000 in the first quarter. 

JKH which also has resorts in the Maldives, said occupancy there was also higher with a 17 percent gain in arrivals.

Nestle Lanka to invest Rs 1 bn billion for Pannala factory expansion

H.D.H Senewiratne

Sri Lankan's one of the leading food and beverage multinational giants Nestle Lanka Plc will invest more than Rs one billion for the Pannala factory expansion and brand building activities this year to increase its brand equity in the market, its Managing Director Ganesan Ampalavanar said.

"At present our company produces several food and beverages for the local market and most or our products are enjoying the market leader position in Sri Lanka, Ampalavanar told the Daily News Business. He said so at the launching of Maggi Noodles re-launch ceremony where it has introduce two flavor namely curry and chicken fortified with Vitamin A.

He said that the some of their brands like Milo Milk products, Nestle condense milk, Maggi noodles, coconut milk power and several other brands enjoy the market leader position. With these developments the company is now in the process of investing in heavily on the factory expansion and brand build activities in Sri Lanka, Ampalavanar said.

"The direction of the Nestle the world over is towards nutrition, health and wellness. We are using our food and beverage to bring about nutritional benefits to our consumers, in addition to fortifying our products with essential micro nutrients and other nutritional advantages for our consumers," he said.

He also said that the company is also constantly improving the nutritional profile of their products by reducing public health sensitive nutrients and their Maggi product has continuously reduces saturated fat levels and also salt content through their world renowned research and developments, he said.

Nestle has supported the Sri Lankan dairy sector since the 1980s. "Today Nestle Lanka has three milk factories," Ampalavanar added. Nestle is Sri Lanka's single largest private sector collector of fresh milk, procuring fresh milk from over 15,000 local dairy farmers every day.

Over the years Nestle has invested to develop the area around that first factory, setting up milk collection points and training farmers to improve productivity and quality by supporting the national economy in a big way.
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Distilleries net profits Rs 6.3B

Ceylon FT: Distilleries Company of Sri Lanka (DCSL) reported a net profit of Rs 6.32 billion for the year ended 31 March 2014, up 20.23% from a year ago, interim financial results showed.

Group revenue fell 2.10% to Rs 64.4 billion and gross profit rose 8.8% to Rs 14 billion.

Investment and other income fell 28.23% to Rs 1.26 billion, distribution expenses rose 2.80% to Rs 1.89 billion, administration expenses rose 8.69% to Rs 3.73 billion and other operating expenses fell 61.2% to Rs 353.67 million.

Finance costs fell 27.85% to Rs 1.2 billion and pre-tax profits grew 17.93% to Rs 9.53 billion. Earnings per share amounted to Rs 20.68, up from Rs 17.13 a year ago.
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Hemas closes eventful year with 39% operating profit growth

Hemas Holdings yesterday posted consolidated net earnings of Rs. 2,409 m, a 45.2% year-on-year growth, and operating profits of Rs. 3,379 m, a growth of 38.6%, for the financial year 2013/14.

As per interim results released yesterday, for the year under review, operating profits were largely on account of strong performance of Healthcare, FMCG and Transportation sectors.

Operating profits were positively impacted by the capital gain and fair value gain relating to its Tangalle land, and negatively impacted by an impairment at its Heladhanavi thermal plant. After adjusting for these one-off items, Group operating profits still showed a healthy growth of 19.0%, stated Hemas Holdings Chairman Husein Esufally.

Esufally noted: “The year has been an eventful one with the acquisition of J.L. Morisons and the successful transition of new leadership. The year closed out with the company posting stellar results, and being well positioned for future growth.”

The FMCG business recorded revenue growth of 24.1% while its operating profits grew by 26.0%. During the year, the business re-launched many of its key brands accounting for 80% of its business revenue with significant enhancements to product quality.

Healthcare sector performance was boosted by its Pharmaceutical distribution business, which reinforced its market leading position, increasing its share of the private market to 21.0% (IMS). Revenues grew by 18.0%, despite sluggish industry growth which stood at 1.32% for 2013 (IMS).

The company strengthened its position in this space through the acquisition of a 90% stake in J.L. Morisons, which posted an earnings growth of 50.6% despite a 13.3% drop in top-line (due to the loss of two consumer distribution agencies).

Hemas Holdings’ third hospital at Thalawathugoda, a 55-bed multi-specialty facility, commenced operations in June 2013. After 10 months of operation, the build-up of patient volumes looks encouraging. Meanwhile, operations at its flagship Wattala Hospital continue to grow, with more high-end surgeries being performed.

After a relatively poor summer season, the Leisure industry enjoyed a strong winter season, and as a result, Hotels and Inbound Tours ended the financial year on a high note. Club Hotel Dolphin was refurbished at a cost of Rs. 488 m, which has significantly enhanced the appeal of the property – the main contributor in the Hotel portfolio.

The Transportation sector continued to generate strong growth within its portfolio during the year under review. The partnership with its maritime principals was further strengthened through the Joint Venture agreement to grow the feeder agency business in light of the expansion of the Port of Colombo. The Aviation segment continued to post a healthy performance.

The Power sector posted mixed results with an exceptional performance in the mini hydro segment during the early part of the financial year. “Overall results were significantly impacted by a Rs. 576 m impairment as we have estimated the recoverable value of the thermal assets to fall short of their carrying value,” Esufally stated.

During the early part of the year, Hemas acquired 29.3% of Panasian Power PLC, increasing its mini hydro portfolio to five operating plants with a total capacity of 11.4 MW.

Following a planned leadership transition, Steven Enderby was appointed Chief Executive Officer on 1 April 2014. “I am confident that Steven, along with the leadership team, will build on this strong foundation going forward,” added Esufally.
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