Record results for Browns Group

Profit of Rs 3.3 billion in 2010:

The Browns Group has posted for the first time in history a profit before tax of Rs 3.3 billion which is a growth of 319 percent compared with the same period last year and a net profit of Rs 3.1 billion for the same period.

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

Group MD and CEO Murali Prakash said the above result clearly justifies the strategy of growing 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,” he said.

The Browns Group is one of the few organizations to have market leadership in seven segments they operate in. These include tractors, Marine engines, battery, branded power tools, radiators, vet pharma and integrated business solutions.

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 percent stake in Seylan Bank PLC and holds a stake of 6.9 percent in Hatton National Bank PLC 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 nine 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 percent 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 percent 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 third 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 capitalize on the post conflict tourist bloom. The Browns Group along with Lanka Orix Leasing Company acquired a 20 percent stake in Sierra Constructions Pvt Ltd in October 2010 as well as an additional 20 percent 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.