CIC : Annual Report 2023/24

60 years of
Nurturing Life	A n n u a l R e p o r t 2 0 2 3 / 2 4
	C I C H o l d i n g s P L C

60 years of Nurturing Life

Since our inception, we have been guided by the principle that our success is not measured solely in profits but in the positive impact we make on the lives of individuals and the communities we touch. Today, as we celebrate 60 years of "Nurturing Life", we reflect on a journey that has been through continuous evolution.

The relationships we've fostered over the years extend beyond transactions; they are rooted in the lives of people we have empowered. Our people, partners, and the communities we operate in have been integral to the narrative of CIC, forming a collective force that propels us forward.

Looking forward, we remain optimistic with opportunities to innovate, collaborate, and continue our legacy of meaningful impact. As we brave the future with a renewed sense of purpose, we stand ready to make a lasting impact for the next 60 years and beyond.

2	CIC HOLDINGS PLC

CONTENTS

ABOUT THE CIC GROUP

Performance Report	4
Financial & Operational Highlights	5
60th Anniversary Celebrations	8
About the Report	10
Chairman's Message	12
Group Chief Executive Officer's Review	15
Board of Directors	20
Management Team	24
Value Creation Model	26

STRATEGY REPORT

Strategic Priorities	28
Stakeholder Engagement	30
ESG Framework	33
Esg Approach of CIC Holdings	35
Material Topics	39
Operating Environment	42

www.cic.lk

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MANAGEMENT DISCUSSION AND ANALYSIS

Financial Capital	58
Manufactured Capital	61
Intellectual Capital	65
Human Capital	72
Social and Relationship Capital	80
Natural Capital	88
Corporate Governance	92
Audit Committee Report	141
Report of the Human Capital &
Compensation Committee	143
Nomination Committee Report	145
Report of the Related Party
Transactions Review Committee	146
Board of Directors Statement
on Internal Controls	148
Risk Management Report	149

Annual Report 2023/24

3

Vision

To be the most respected and admired corporate for the positive impact we make on society by nurturing the lives of those we touch.

Mission

Harnessing science and modern technology, we will provide solutions of superior quality which are efficient and safe. We will build rewarding and lasting relationships with our stakeholders and be a significant entity in every sector we operate.

V I S I O N

M I S S I O NV A L U E S

Values

OWNERSHIP & ACCOUNTABILITY:

This is my business and I take responsibility for my promises and actions

TEAMWORK & TRUST:

We rely on each other to unleash the power of working together

INTEGRITY & RESPECT:

Honesty & Truth are paramount: we respect the law and each other

ENTREPRENEURIAL & INNOVATIVE:

We will constantly challenge boundaries seeking new horizons

CUSTOMER FOCUS & QUALITY:

The customer comes first: we will not compromise on the standards of our products and services

BIAS FOR ACTION & WINNING SPIRIT:

No stone will be left unturned in the pursuit of the goals

Rs.76Bn	Rs.11Bn	Rs.78Bn
Group Revenue	Net Profit	Total Assets
	After Tax

Rs. 25.70	Rs.92.05
Earnings	Net Assets
Per Share	Per Share

4	CIC HOLDINGS PLC

PERFORMANCE REPORT

"The 'starburst' symbol depicts both the convergence of CIC's various business entities towards one common purpose, which is 'Nurturing Life', and divergent positive impact of these businesses in their respective sectors."

Feeds	Rs.16Bn	Health & Personal Care
Livestock Solutions
Poultry	Revenue
Vetcare		Pharmaceuticals
		Medical Devices
		Personal Care
		Herbal Health Care

Rs.5Bn	Rs.16Bn
Revenue
Revenue

Agri Produce

Agri Produce Retail Chain

Agri Resort

Dairy	Industrial Solutions
Farms	Construction Material
Fruits & Vegetables	Industrial Raw Material
Grains	Packaging
Rice			Rs.8Bn
Rs.31Bn Lawn & Garden
Revenue
Crop Solutions
Revenue
Plant Nutrition
Plant Protection
Seeds

Annual Report 2023/24

5

FINANCIAL & OPERATIONAL HIGHLIGHTS

		Group
For the year ended 31st March		2024	2023
Earning Highlights and Ratios
Group revenue	Rs. '000	76,424,242	68,274,718
Group profit before interest and tax	Rs. '000	10,673,653	16,843,086
Income tax expense	Rs. '000	(2,543,225)	(3,070,914)
Profit for the year from continuing operations	Rs. '000	10,974,197	9,997,624
Profit for the year from discontinued operations	Rs. '000	47,197	54,934
Other comprehensive income	Rs. '000	3,577,528	(313,920)
Total comprehensive income	Rs. '000	14,598,922	9,738,638
Profit attributable to equity holders of the Company	Rs. '000	9,743,258	7,801,449
Dividend Paid	Rs. '000	947,700	379,080
Basic/Diluted earnings per share (EPS)	Rs.	25.70	20.58
Interest cover	Number of times	4.55	4.03
Return on equity (ROE)	%	28	34
Return on assets (ROA)	%	19	17
Pre-tax return on capital employed (ROCE)	%	20	45
Statement of Financial Position - Highlights and Ratios
Total Assets	Rs. '000	78,487,258	55,802,767
Total Equity	Rs. '000	39,994,876	27,829,015
Total Debts	Rs. '000	25,425,607	15,289,932
Equity attributable to equity holders of the Company	Rs. '000	34,893,140	22,996,023
Number of shares in issue	Number	379,080,000	379,080,000
Net assets per share	Rs.	92.05	60.66
Debt/Equity	%	63.57	54.94
Debt/Total assets	%	32.39	27.40
Market/Shareholder Information
Market price per share as at 31st March
Ordinary	Rs.	70.50	71.20
Non-Voting (Class X )	Rs.	52.50	49.50
Dividend per share
Interim paid	Rs.	-	-
Final proposed	Rs.	2.50	2.50
Market capitalisation	Rs.Mn	25,151	25,092
Float adjusted market capitalisation	Rs.Mn	14,028	13,865
Price earnings ratio
Ordinary	Number of times	2.74	3.46
Non-Voting (Class X )	Number of times	2.04	2.41
Other Information
Total employees	Number	2,272	2,109
Revenue per employee	Rs. '000	33,637	32,373
Total value addition to employees	Rs. '000	3,940,725	3,047,126
Value addition to lenders of the capital	Rs. '000	4,663,731	5,852,891
Total taxes paid to Government	Rs. '000	7,480,200	4,413,011

MILESTONES

1964

Incorporation of Chemical Industries (Colombo) Limited (now known as CIC Holdings PLC) listed in the Colombo Brokers Association

1968

Commence the operations of

Ratmalana Factory

1974

Formation of Chemanex PLC

1991

Expanded its operations by incorporating CISCO Specialty Packaging (Private) Limited to manufacture PET Bottles

Rooted

1992

Purchase of Fertilizer business from British American Tobacco and incorporation of CIC Fertilizers (Private) Limited (now known as CIC Agri Businesses (Private) Limited)

1995

Incorporation of CIC Paints (Private) Limited (now known as Akzo Nobel Paints Lanka (Private) Limited)

1993

Investment in CIAL where we produced writing instruments.

Head office shifted to own premises

1998

Lease of Hingurakgoda Seed Farm (1300 acres)

2000

Lease of Pelwehera Seed Farm (650 acres)

2002

Purchase of Nutrina (Private) Limited from Cargills Inc. USA & Incorporation of CIC Feeds (Private) Limited

in Life

2023

John Keells Holdings (JKH) became an associate of CIC Holdings PLC

2021 2022

		Acquisition of Asiavet
Acquisition of Bio
Lifesence (Pvt) Limited
Technologies Limited

2020

Transformation of the organizational structure in accordance with the "CIC Re-Strategising 2020" by segregating the business into five core clusters; Crop Solutions, Agri Produce, Livestock Solutions, Health & Personal Care and Industrial Solutions

2017

Purchase of Unipower (Private) Limited

2016

		Brand Re-launch, with a new logo.
2014	Incorporation of CIC Grains (Private)
Ltd to process inputs for the feed
		industry. Shifting of PVA factory to
Shifting of PVA and RPC	Godagama
manufacturing facility to

Godagama

2012

2006

Incorporation of CIC CropGuard (Pvt) Limited

2003

Investment in Ceylinco Pharmaceuticals Limited (now known as CIC Lifesciences Limited)

Incorporation of CIC Dairies at Dambulla

2011

Change of Company name from Chemical

Industries (Colombo) PLC to CIC Holdings PLC

2010

Writing instruments factory shifted to own premises at Piliyandala

Investment in Link Natural Products (Private) Limited

8	CIC HOLDINGS PLC

60TH ANNIVERSARY CELEBRATIONS

2024

CIC HOLDINGS PLC MARKED ITS 60TH ANNIVERSARY

CELEBRATIONS WITH A CEREMONY HELD AT HEAD OFFICE THAT WAS LIVE STREAMED TO ALL ITS SUBSIDIARY COMPANIES

• LOCATIONS ISLANWIDE. MULTI RELIGIOUS CEREMONY WAS ALSO HELD AT THE HEAD OFFICE TO COMMEMORATE THE 60TH

ANNIVERSARY.