THE BOTTOM LINE
The Peer Review
The who’s who of highly respected organisations by those who helm Sri Lanka’s leading corporates
Worldwide, corporates continue to grapple with the aftermath of multiple challenges amid global conflicts and economic uncertainties. Locally, businesses have learned from their experiences and are cautiously navigating the troubled waters, refining their ability to adapt to evolving economic realities.
Slow and steady wins the race, after all.
Navigating through the turmoil has compelled businesses and organisations in gene-ral to innovate and make agile decisions. And while there has been some improvement in the economic environment, ongoing challenges – not least the forthcoming polls – will continue to test corporate resilience.
In this 20th edition of the Most Respected, LMD applauds the outstanding entities that have demonstrated unwavering determination, adaptability and innovative thinking amid adversity.
These enterprises – spanning highly diversified conglomerates, apparel giants, leading banks and multinationals – have earned recognition for their ability to navigate turbulent times while laying their claim to fame vis-à-vis respect and admiration.
As the competitive landscape evolves, the Most Respected rankings underscore the importance of adaptive strategies and innovative approaches, to maintain leadership and contribute towards the nation’s economic wellbeing.
Notably, this year’s Most Respected rankings feature an impressive 102 new entrants, highlighting the resilience and lasting impressions of these organisations in the face of untold challenges.
John Keells Holdings (JKH) once again claims the top rung on LMD’s Most Respected entities ladder, marking its 19th time at the summit of the unique rankings. Impressively, this also represents the 15th consecutive year that JKH has stood at the helm, affirming its reputation as a steadfast and esteemed conglomerate.
A highly diversified conglomerate, JKH, operates across seven sectors, upholding its commitment to values, ethics and sustainable business practices. In turn, this dedication has established it as one of Sri Lanka’s most admired businesses.
The blue-chip company reported a satisfactory financial performance in its 2023/24 financial year, aligning with expectations of a period of consolidation focussed on achieving stability and a gradual recovery, following the economic crisis.
Its recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs. 43.8 billion compared to 45.7 billion rupees in 2022/23.
In PepperCube Consultants’ 2024 peer review (which evaluates organisations on 16 criteria), JKH excelled in as many as 10 cate-gories – viz. corporate culture, crisis management, dynamism, ethical outlook, expansion, leadership, national perspective, quality consciousness, strategic vision and sustainability.
Having ranked third in the previous edition, Hayleys climbs one spot to secure se-cond place on the Most Respected list. The export led conglomerate also secured the second spot in the leadership category, -according to PepperCube Consultants’ attri-butes review.
Additionally, Hayleys is ranked third in several other categories including aspirational workplace, dynamism, crisis management, employee wellbeing, financial performance and national perspective.
As one of Sri Lanka’s largest value added exporters, Hayleys’ rise to second place marks the fifth year it has achieved this feat since the inception of the Most Respected rankings. The conglomerate reported an -after tax profit of Rs. 7 billion for the nine months ended 31 December 2023, compared to the 24 billion rupees recorded in the prior year.
Commercial Bank of Ceylon (ComBank) ascends one spot to third place in this year’s list. Since 2005, ComBank has consistently ranked among the top five, cementing its posi-tion as the largest private sector bank in Sri Lanka by net worth and capital.
Earlier this year, the bank was recognised as LMD’s Most Awarded corporate, highlighting its achievements on multiple counts. In the attributes review this year, ComBank tops the categories of financial performance, honesty and tax compliance. And perception-wise, it ranks second for both financial performance and honesty.
Demonstrating robust lending growth in support of the nation’s economic revival, the ComBank Group lent Rs. 56.8 billion in the fourth quarter of last year, closing calendar year 2023 with a loan book of nearly Rs. 1.3 trillion.
Meanwhile, the global apparel giant MAS Holdings falls two places in the 2024 Most Respected pecking order to occupy fourth spot.
Despite this decline however, the group heads the lists of attributes for aspirational workplace and employee wellbeing.
Dialog Axiata continues its reign at No. 5 on the coveted list and maintains its top billing for innovation among the 16 evaluation criteria of the survey undertaken by PepperCube Consultants.
The telecom powerhouse continues to showcase an enviable top line performance across all its business segments including mobile, fixed, digital pay television, international, digital platforms and tele-infrastructure. Dialog’s consolidated revenue for 2023 – of nearly 188 billion rupees – reflected a five percent year to date growth.
Notably, the group’s net profit after tax surpassed the Rs. 20 billion mark – a substantial increase of over 100 percent, driven by a strong EBITDA performance, reduced depreciation, forex gains and lower finance costs.
The second bank to make the top 10 on the Most Respected list, Sampath Bank’s rise to fame is notable; it climbs five spots up the ladder to rank sixth. Positioned as a customer friendly bank that’s trusted with a range of products, branches, modern technology and professional staff, Sampath Bank says its focus has shifted to being sustainable, high performing and financially stable.
Unilever Sri Lanka – a leading fast-moving consumer goods (FMCG) corporate, which manufactures 96 percent of its pro-ducts locally – slips one spot to seventh place in the 2024 Most Respected rankings.
In contrast, LOLC Holdings – another -diversified conglomerate engaged in various sectors including financial services, leisure, agriculture and plantations, and construction – climbs one place to No. 8 on the coveted list.
The third bank to enter the charts at number nine, Hatton National Bank (HNB) recorded consistent performance in liquidity, asset quality, capital strength, efficiency and profitability in calendar year 2023. According to its financial statements, the bank’s interest income grew year-on-year by more than 37 percent, surpassing 284 billion rupees.
And Hemas Holdings rounds up the top 10, reporting record earnings for its financial year ended 31 March 2024. Driven by strong performances in its core businesses and reduced finance costs, the conglome-rate’s earnings demonstrated a substantial 43 percent growth, reaching Rs. 6.1 billion for the year.
Its consolidated revenue rose by 6.7 percent to in excess of 121 billion rupees, dri-ven by improvements in all its core business units amid the adverse impacts of macro-economic challenges. Hemas also announc-ed a final dividend of Rs. 3 a share for the financial year.
Indeed, the latest rankings of Sri Lanka’s Most Respected entities reveal a diverse landscape of corporate performance and resilience amid the challenges posed by the nation’s economic hardships. Key indicators such as financial performance, strategic leadership and sustainability efforts have been pivotal in determining their standing among peer groups.
The Most Respected rankings underscore the importance of adaptability and innovation, in navigating volatile economic and market environments, reinforcing the importance of committing to sustainable growth and stakeholder value creation.
