Sri Lanka’s Dankotuwa group shines with impressive performance in FY22 - Opportunity Sri Lanka
Sri Lanka’s Dankotuwa group shines with impressive performance in FY22

Sri Lanka’s Dankotuwa group shines with impressive performance in FY22

Daily FT: Dankotuwa Porcelain, renowned for its luxurious and elegant porcelainware, has posted commendable results for financial year 2021/2022 according to the latest financial results released to the Colombo Stock Exchange.
As a Company, Dankotuwa Porcelain, recorded a revenue of Rs. 2.36 billion for the financial year 2021/2022 a 56% growth when compared to the Rs. 1.51 billion achieved last year.  Further, the Company achieved a Gross Profit (GP) of Rs. 926.83 million, which was a 116% growth compared to the Rs. 428.47 million achieved last financial year. 

The profit before tax (PBT) for Dankotuwa as a company was recorded at Rs. 465.26 million, a commendable achievement when compared to the loss of Rs. 134.53 million made during corresponding Financial Year 2020/2021.
Dankotuwa Porcelain as a group (which includes its subsidiary Royal Fernwood Porcelain Ltd.) posted a revenue of Rs. 3.76 billion, a 55% growth compared to the Rs. 2.43 billion achieved last year. The group further achieved a gross profit (GP) of Rs. 1.20 billion, a 90% growth compared to Rs. 635.49 million and profit before tax (PBT) of Rs. 211.70 million, an impressive increase compared to the loss of Rs. 395.96 million posted last financial year.
Royal Fernwood Porcelain Ltd., recorded a loss of Rs. 121.13 million for the reporting financial year which contributed negatively towards the performance of the group. However, currently, measures are underway to restructure the company, and realign business verticals which will enable convergence of resources and propel positive results during the following year.
“It is indeed a proud moment for us to announce the remarkable performance of the organisation,” CEO Channa Gunawardana said.
“The journey hasn’t been easy. The pandemic and related lockdown in addition to the political and economic disruptions that affected the lives of Sri Lankans continued to test our resilience and readiness as an organisation to face macro – economic challenges during the year. However, I must state that with a performance driven eco-system and an improved business model which focused on international markets and profitable businesses, in addition to optimising capacity, increased efficiency and improved sales performances supported the sustenance and growth of the business during these trying times,” Gunawardana added.
Gunawardana also said: “Collective leadership was a concept introduced during the period under review, which enabled all employees to identify their true potential and showcase their best performance within an unfavourable environment. The concept involved implementing six cross functional team members responsible for leadership – individually responsible for a period of two months. Hence, for the period of a year, the company was able to work in collective leadership to record this impressive performance.”
The CEO also highlighted the role of employees in the company’s success so far. “Significant progress has been achieved in creating a more cohesive organisational structure and a target driven progressive culture across the group. Our employees are firmly committed to achieving the milestones drawn for the organisation, abiding by the trust placed by our stakeholders. This resulted in the company winning the ‘Best Workplace in Manufacturing and Production Industry in Sri Lanka’ an accolade given by the independent analysts at Great Place to Work in Sri Lanka.
“With the strategy in place and the ideal structure and employees to complement the same, we will continue to mark our presence as a lifestyle brand both locally and internationally, placing Sri Lanka on the global map for quality porcelainware,” Gunawardana added.
Dankotuwa Porcelain, a subsidiary of Ambeon Holdings, commenced its commercial operations in 1984. From superior glazing technologies, personalised designs and endless options, the company continues to create a timeless and modern collection of porcelainware that expresses exclusive dining experience for every occasion. The Financial Year 2021/22 saw the group moving away from traditional tableware and venturing into new segments, introducing a range of porcelain-based giftware into local and global markets.
The Board of Directors of Dankotuwa Porcelain comprised of eminent personalities who were responsible for providing strategic leadership which resulted in the successes recorded are  Yudy Kanagasabai (Chairman), Revantha Devasurendra, Rohan Peris, Neranjan Wijesekera, Shalika Karunasena and Dr. Sajeeva Narangoda.

OSL take:

The profits recorded by Sri Lanka’s Dankotuwa Porcelain is indicative of the strength and growth of the country’s private sector. Despite facing many challenges in the past few years, many private sector businesses have recorded a growth and profits. Given the many trade agreements and trade concessions enjoyed by the country as well as its move to place Sri Lanka as an emerging business destination in the South Asian region  foreign businesses/investors could confidently explore the growing opportunities in the country’s private sector. Foreign businesses/investors could look at forming partnerships or joint ventures with local businesses and focus on expanding operations. Once the expansions are in place with increasing production capacities, Sri Lanka’s strong trade ties could be used to expand into the export market. 

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Article Code : VBS/AT/12072022/X_8

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