Welcome to Lankem Development PLC!
The Company was re-registered on 19th November 2007 as required under the Companies Act No. 07 of 2007.
Having changed its line of business in the year 2012, the Company now functions mainly as an Investment Holding Company.
Lankem Development PLC experienced significant shifts in financial performance across its key sectors—Tea and Hydro Power during the 2023/24 financial year. Both sectors encountered various challenges that impacted their revenue and profitability, with each sector exhibiting distinct trends.
Tea Sector
For the tea sector, Lankem Development PLC saw a notable decline in revenue, which decreased to Rs. 7,153 million from Rs. 8,518 Mn in 2022/23. This drop in revenue reflects ongoing difficulties, including price volatility and increased production costs.
Gross profit for the tea segment also fell sharply to Rs. 831 Mn, down from Rs. 2,656 Mn the previous year. This significant reduction in gross profit underscores the adverse effects of cost pressures and reduced revenue. Consequently, profit before tax in the tea sector declined to Rs. 743 Mn from Rs. 2,387 Mn. Profit after tax also experienced a steep decline, dropping to Rs. 454 Mn from Rs. 1,782 Mn, illustrating the broader challenges impacting profitability.
Hydro Power Sector
In contrast, the hydropower sector demonstrated better performance due to favourable weather patterns experienced during the year. Revenue in this segment increased to Rs. 62 Mn from Rs. 52 Mn in 2022/23. Further, the hydropower sector managed to maintain a relatively strong gross profit of Rs. 41 Mn compared to Rs. 32 Mn the previous year. This indicates effective cost reduction.
Profit before tax for the hydropower sector was Rs. 16 Mn, showing a significant increase from a loss of 0.5 Mn in 2022/23, reflecting strong operational performance. Profit after tax increased to Rs. 11 Mn from a loss of Rs. 18 Mn, for the year 2022/23.
Through the generation of carbon credits from renewable energy production, we play a proactive role in environmental sustainability by reducing greenhouse gas emissions and fostering cleaner practices. Each carbon credit signifies a concrete reduction in emissions, effectively counterbalancing our carbon footprint. Our involvement in the carbon credit market not only helps offset our own impact but also motivates other organizations to embrace eco-friendly practices. This, in turn, creates a positive ripple effect, advancing the transition towards a more sustainable and resilient environment for future generations.
