Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» INSURANCE companies finally falling!
by wisdom79 Yesterday at 7:50 pm

» Sri Lanka shares end little changed; rupee rises
by Miss-Sangeetha Yesterday at 6:30 pm

» Daily Stock Market Update
by Insights Equity Yesterday at 6:17 pm

» presidential election very soon ?
by Yahapalanaya Yesterday at 5:59 pm

» World Bank approves USD70Mn to Sri Lanka
by ChooBoy Yesterday at 2:06 pm

» Diversification of Sri Lankan economy, must to garner more economic benefits
by ChooBoy Yesterday at 2:04 pm

» MARKET CRASH - GUARANTEED
by Maharaja Yesterday at 1:17 pm

» ALHP Right issue......!!!!1
by Miss-Sangeetha Yesterday at 11:47 am

» UBC.N0000- Donnt miss this
by Trader321 Yesterday at 10:13 am

» UBC TO HIT 24 ??
by mahasona2 Yesterday at 10:01 am

» Sri lanka tourism income reached 4.4 billion USD 2019
by ranferdi Yesterday at 8:48 am

» BFN - DEAL OVER - TO BE DE LISTED SOON AFTER THE PRIVATE PLACEMENT ඩීල් එක ඉවරයි @ 19-59 - කොටස් වෙළදපලෙනුත් ඉවත් කරගන්නා බවට ආරන්චි
by sanjulanka Mon Mar 18, 2019 7:03 am

» While waiting for the market to rebound, look for bargains if you can afford the risk. Try to be active at the right time to gain something
by Asoka Samarakone Sun Mar 17, 2019 3:18 pm

» ඉතා ඉක්මනින් සේවක අර්තසාදක අරමුදල නැවත කොටස් වෙළදපල ට
by mahasona2 Sun Mar 17, 2019 3:43 am

» Central Bank targeting early return of EPF to stock market
by mahasona2 Sun Mar 17, 2019 3:24 am

» Lofc delisting??
by Bdcdman Sat Mar 16, 2019 11:16 pm

» Weekly Stock Market Roundup
by Insights Equity Sat Mar 16, 2019 5:37 am

» Today is UBC.N0000 day.
by Trader321 Fri Mar 15, 2019 11:32 am

» HVA WILL THEY RECTIFY THE REGULATORS QUARIES BEFORE DEAD LINE?
by Bdcdman Fri Mar 15, 2019 11:11 am

» ALHP WILL MOVE UP from next MONDAY
by Miss-Sangeetha Fri Mar 15, 2019 10:52 am

» GOLDEN ERA
by ranferdi Fri Mar 15, 2019 8:45 am

» ALHP WILL MOVE UP SOON
by mahasona2 Thu Mar 14, 2019 11:05 pm

» AEL.N0000 is the Next AAIC.N0000 -
by wisdom79 Thu Mar 14, 2019 9:38 pm

» CASH RICH REXP
by Yahapalanaya Thu Mar 14, 2019 6:09 pm

» ලාංකීය හෙදියකට ලක්ශ 9 ක් ගෙවන ඇමෙරිකාව
by Uaecoindubai Thu Mar 14, 2019 3:48 pm

» BALA.N potential
by NP Thu Mar 14, 2019 2:30 pm

» EAST INTERESTING DAYS AHEAD 25+
by karuna2 Thu Mar 14, 2019 11:43 am

» රජයේ පඩි දෙගුණයක් වුන හැටි
by Uaecoindubai Thu Mar 14, 2019 9:31 am

» UBC.N0000 Vs AEL.N0000 - What will be the best
by Trader321 Thu Mar 14, 2019 9:15 am

» UBC - Stake up by big invester
by sanjulanka Thu Mar 14, 2019 7:57 am

» EFP TO start again invest in Stocks
by mahasona2 Thu Mar 14, 2019 1:10 am

» Second reading of budget passed by 119 Votes - Shows this Government is Confident
by Maharaja Wed Mar 13, 2019 11:27 pm

» UBC - What is going on
by mahasona2 Wed Mar 13, 2019 9:51 pm

» Fall of stocks - Big Players are behindThis is the time to buy and collect stocks
by mahasona2 Wed Mar 13, 2019 9:49 pm

» Government salary hike almost double..
by Uaecoindubai Wed Mar 13, 2019 9:32 pm

» COLOMBO STOCKS 5 1/2 LOW
by soileconomy Wed Mar 13, 2019 7:19 pm

» UBC.N0000 ? Expert ideas please ?
by Trader321 Wed Mar 13, 2019 2:31 pm

» UBC.N000- keep eye, something is happening
by Trader321 Wed Mar 13, 2019 2:22 pm

» How about EAST @ 10/= end of march
by karuna2 Wed Mar 13, 2019 2:21 pm

» CHOU.N0000
by Shiranleet Wed Mar 13, 2019 11:16 am

» Why Access might be over Rs. 2000/ per share valued along with Banks by 2049, due to New Budget Proposals on Joint Venture Construction projects
by Chanaka303 Wed Mar 13, 2019 9:58 am

» HPWR-Unnoticed Gem?
by Chanaka303 Wed Mar 13, 2019 9:57 am

» What is going on with TFC.N0000
by Gihan04 Wed Mar 13, 2019 9:45 am

» DIST.N0000
by Bdcdman Wed Mar 13, 2019 1:13 am

» Sri Lanka largest Foreign Direct Investments realizer and Deal Maker: Union Bank connected Alex Lovell might own and control over US $ 40 billion worth properties by 2025 in Sri Lanka, around over 30% of Sri Lanka's GDP of US $ 120 billion
by JosephMark Wed Mar 13, 2019 12:40 am

» Hpfl and rhtl
by Yahapalanaya Tue Mar 12, 2019 7:58 pm

» Exit out from EAST, Valuations are low. Dont wait till the month end.
by charithaa Tue Mar 12, 2019 12:33 pm

» EAST.N0000 - Huge loss...Donn't get into these traps.
by investo Tue Mar 12, 2019 12:05 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » CIC Chairman,s Statement

CIC Chairman,s Statement

Go down  Message [Page 1 of 1]

1 CIC Chairman,s Statement on Sun Jun 24, 2018 8:04 pm

2017 Cse


Stock Analytic
Stock Analytic
Dear Shareholder It was an extremely challenging year for the CIC Group amidst tough economic conditions, which saw Sri Lanka’s GDP growth slowed to 3.1% in 2017. The country’s agriculture sector remained in distress due to persistent adverse weather for the second consecutive year. The spillover effects of bad weather impacted other sectors of the economy as well, most notably the industry and services sectors, where growth indicators for 2017 remained more or less static compared to the previous year. Inflation remained high as did interest rates. Meanwhile the decision by the government to allow the free float of the Rupee saw the currency begin to depreciate from about September 2017, bringing severe pressure on many companies within the CIC Group due to their heavy reliance on raw material imports. ADJUSTING TO CHANGE Before I proceed to review the performance for the year, let me briefly recap some key events in the recent past that have a significant bearing on results for the 2017/18 financial year. As you may recall the CIC Group underwent a fairly significant restructuring a few years ago, to be precise in 2013/14 where as a result the Group reported a significant loss of Rs. 1.1 Bn at the end of that year. However stemming from this effort, the Group made a turnaround and succeeded

in delivering an outstanding performance in the years that followed, tabling PBIT of Rs. 2.1 Bn in 2014/15 and an even better result of Rs. 2.7 Bn in 2015/16. Not to be complacent and more importantly to overcome the deteriorating market conditions in 2017, we looked to further refine our 2014 restructuring effort in order to shape up for the future. With deteriorating market conditions continuing to affect the prospects of many of our businesses, we felt it is imperative that the Group is structured to respond more effectively to the changing market dynamics and embarked on “CIC re-strategizing 2020”, a re-calibrating exercise aimed at creating a more efficient and fluid organisation. Following much introspection we began the task of de-layering our operations to enhance our competitive position in each of our chosen industries. Given our intention to right size the business, we were compelled to take on serious losses as we made some tough but necessary decisions to re-scale certain businesses, while exiting from yet others that did not demonstrate the potential to generate a sustainable return in the future. The re-strategizing exercise was also accompanied by a Group-wide VRS scheme, which proved to be a further draw-down on the Group profits for the year under review. Consequently, the losses incurred as a result of the re-strategizing and the VRS together saw the Group’s PBIT decline to Rs. 1.3 Bn in 2017/18. Nonetheless, I remain confident that the savings generated as a result of the VRS and the closure of the loss making businesses would go on to enhance GP margins in the near-term and in turn contribute towards a consistent improvement in the bottom line, going forward. STRENGTHENING GOVERNANCE I am pleased to note that while early progress against our strategy has been encouraging, we continued to focus diligently on advancing our governance frameworks to ensure proper oversight for the planned execution of our strategy. Throughout the year the Board and its various committees engaged with executive teams to keep the momentum in implementing the “CIC re-strategizing 2020” initiative. This included strengthening the strategy review process, with a strong emphasis on effective execution, reviewing the allocation and need for resources and supporting the management to deliver on our promises to stakeholders. I firmly believe that these efforts too will produce more focused businesses that will help the Group to secure leadership in these respective industries. PARTNERING FOR INNOVATION Innovation has been the cornerstone of the Group’s success. Since the inception, CIC has been credited with numerous firsts and even today remains unchallenged in many spheres. I must acknowledge that our ability to stay on top of the innovation spectrum has largely been pivoted on our strategic partnerships with the relevant government authorities and our relationships with long-standing principals, all of who are top multinationals and leaders in their respective fields. As we look to accelerate our new strategic journey, we remain focused on deepening these ties with existing business partners and also actively sourcing new relationships to give us access to more compelling and innovative products that would transform the lives and businesses of our customers. MOVING FORWARD While the country forecast for the coming year remains uncertain, given the tough decisions that were taken during the year, I am confident that the CIC Group is on track to achieve significant profits in the years ahead. As the “CIC re-strategizing 2020” continues to play out, our simplified operating structure will enable us to work more efficiently and with a lower cost base, in turn enhancing our competitive position in the long-term. Hence I look forward to the future with a great deal of enthusiasm for I believe the Group is now well placed to continue to grow in 2018 and beyond

2 Re: CIC Chairman,s Statement on Tue Jun 26, 2018 10:21 am

deli

deli
Senior Equity Analytic
Senior Equity Analytic
Insightful indeed

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum