Distilleries of Sri Lanka : Annual Report 2023/24

Quality. Guaranteed

DISTILLERIES COMPANY OF SRI LANKA PLC | ANNUAL REPORT 2023/24

Quality. Guaranteed

Looking back on our legacy of over 100 years, we revel in our identity as one of Sri Lankan's iconic brands, beloved by consumers from generation to generation. What sets us apart is our stringent determination

to maintain quality. Every time.

We, as Sri Lanka's largest distillery, operate on the highest standards of business practices and ethics, the best principles of corporate governance, and with commitment to provide our consumers

with products with highest quality.

Our AAA rating from Fitch Ratings reinforces this, as

only a select few are afforded that accolade. Our shareholders enjoy high returns, and our employees are rewarded for their innovation and hard work, and consumers provided with the very best.

That is why, at DCSL, quality is always guaranteed.

CONTENT

COMPANY OVERVIEW

• Financial Highlights

• A Historical Perspective

1. Distilled to perfection. Enjoyed without reservation

1. Chairman's Statement

1. Board of Directors

1. DCSL Management

1. Management Discussion and Analysis

1. A Year of Cherished Memories

GOVERNANCE REPORTS

36 Corporate Governance

1. Enterprise Risk Management

1. Board Audit Committee Report

1. Remuneration Committee Report
2. Board Related Party Transactions Review Committee
3. Annual Report of the Board of Directors

FINANCIAL REPORTS

1. Statement of Directors' Responsibility
2. Independent Auditor's Report

1. Consolidated Statement of Profit or Loss and
   Other Comprehensive Income
2. Consolidated Statement of Financial Position
3. Consolidated Statement of Changes in Equity

1. Consolidated Statement of Cash Flows

1. Notes to the Financial Statements

SUPPLEMENTARY INFORMATION

1. Ten-YearSummary
2. Statement of Value Added
3. Shareholder Information

1. DCSL Management Team and Unit Management Team

1. Notice of Meeting

1. Form of Proxy
   IBC Corporate Information

FINANCIAL HIGHLIGHTS

		2024	2023
SUMMARY OF RESULTS
Gross Turnover	Rs. Mn	115,396	123,358
Excise Duty	Rs. Mn	69,142	66,399
Net Turnover	Rs. Mn	46,254	56,959
Profit After Tax	Rs. Mn	14,340	18,843
Shareholders Fund	Rs. Mn	10,621	12,248
Working Capital	Rs. Mn	(100)	7,175
Total Assets	Rs. Mn	30,980	29,713
Staff Cost	Rs. Mn	3,421	2,903
No. of Employees		921	938
PER SHARE
Basic Earnings	Rs.	3.12	4.10
Net Assets	Rs.	2.31	2.66
Dividends	Rs.	3.88	2.20
Market Price-High	Rs.	29.00	22.00
- Low	Rs.	17.10	12.60
-Year End	Rs.	26.90	19.60
RATIOS
Price Earnings	times	8.62	4.78
Return on Shareholder Funds	%	135.02	154.14
Current Ratio	times	0.99	1.47
Interest Cover	times	157.04	143.4
Stock Turnover (Finish Goods)	days	20	20
Debt to Equity	%	25.57	0.04
Debt to Total Assets	%	8.77	0.02
Dividend Payout	%	124	54
Dividend Yield	%	14	11

Annual Report 2023/24

3

1. HISTORICAL PERSPECTIVE

Present in Sri Lanka for over a century, The Distilleries Company of Sri Lanka PLC (DCSL), is one of the most profitable and well-respected corporate entities in the country. Its proud tradition, rich heritage and proven credentials have made the Company a beacon of inspiration for others. Over the past 100 years, our corporate DNA has been strengthened with our values of tradition, quality, innovation, resilience and the determination to succeed.

DCSL's roots can be traced back to 1913, when the Excise Department of Ceylon, which was initially created as the enforcement authority to distribute and sell liquor products in Sri Lanka, branched out into the distillation and manufacture of liquor products. In 1974, the State Distilleries Corporation

was incorporated by statute, to take over this venture, while the Excise Department realigned its operations as a monitoring body.

Thus, DCSL has the distinction of being the pioneer distiller in Sri Lanka. In 1989, under a government policy decision, the State Distilleries Corporation was converted into a limited liability company. This transfer of ownership took place at the Colombo Stock Exchange (CSE) in 1992, making it the largest transaction in the history of the CSE at that time.

Under new private management, the Company entered an era of modernisation that witnessed upgrading of machinery and equipment.

4 Distilleries Company of Sri Lanka PLC