The Group delivered a resilient performance for the financial year 2020/21 under challenging business and economic conditions, disrupted primarily due to the global COVID-19 crisis and its repercussions.
Robust performance and strategy-led growth
Ranked in the fourth place, Carson Cumberbatch, driven by the strategic foresight and hallmark leadership of the Hari and Mano Selvanathan, experienced a monumental year of a remarkable financial performance.
The Group’s performance stands as a shining testament of steadfast resilience and strategic efforts, which drove the Group to achieve an impressive top-line of Rs.114.8 billion with underlying growth of 8%. The Group earned a significant profit before tax of Rs.14.3 billion. The core profit before tax, excluding the effects of fair value movements and currency gains, stood at Rs.9.97 billion; an extremely noteworthy achievement in comparison to the Rs.2.91 billion of the corresponding year, after comparable adjustments.
Balancing success alongside diverse challenges
Amidst a challenging environment, the Beverage sector expanded its export sales volumes by 15% YoY during the year while the consequent export revenues grew by 23% YoY. On the international front, significant volatility across global crude palm oil prices was observed during the year, with a steep rise in the monthly spot prices of Crude Palm Oil (CPO) in Bursa Malaysia. Industry factors such as weather-related supply constraints on soya-bean oil, improved demand after the first wave of lockdowns, Indonesia’s B30 biodiesel purchasing program, La Niña weather impact on the plantation operations, and the recovery of crude oil prices collectively contributed towards this CPO price increase.
The palm Plantations sector astoundingly recorded its highest ever crop by producing 1.3 Mn Metric Tonnes of Fresh Fruit Bunches, selling over 318,500 Metric Tonnes of CPO volumes despite a reduction in external crop purchases during the first half of the year. On a more positive note, the sector notably reduced its net finance expenses by 35.3% YoY in rupee terms in the year under review. During the year, the sector’s margarine production plant continued to consolidate its production plans by improving its client base with its joint venture partner J-Oil INC.
Sustainability to the forefront
During 2020, the sustainability efforts of the plantations sector were applauded internationally in the Sustainability Policy Transparency Toolkit assessment, where Goodhope was ranked 17th place out of 100 palm oil companies. Goodhope allocated a total of USD 321,016 during the 2020/21 for environmental monitoring, conservation management, and landscape programs as part of the Company’s natural resource conservation initiatives.
The power of preparedness
The power of preparedness is invaluable when navigating uncertainties and unexpected challenges arising from highly volatile business environments.
During these tempestuous times, the Carson Cumberbatch Group’s proactive as well as decisively executed business strategies across its diverse business segments enabled the leveraging on unshakable foundations, a strong balance sheet, and the main strength of the Group’s loyal employee base.
Board of Directors
Tilak De Zoysa
(Retired w.e.f 30/6/2021)
M. M. Murugappan
Yew Huat Ong
(Appointed w.e.f 1/1/2021)
(Resigned w.e.f 31/12/2020)
(Resigned w.e.f 31/12/2020)
(Alternate Director to M Selvanathan)
(Alternate Director to
D. C.R. Gunawardena)