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The Investor Sentiment - Equity and investments forum for Sri Lankans

The Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSEThe Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSE

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Latest topics

» CCS.N0000 ( Ceylon Cold Stores)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Mar 20, 2024 11:31 am by Hawk Eye

» Sri Lanka plans to allow tourists from August, no mandatory quarantine
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Sep 13, 2023 12:16 pm by lauryfriese

» When Will It Be Safe To Invest In The Stock Market Again?
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Apr 19, 2023 6:41 am by කිත්සිරි ද සිල්වා

» Dividend Announcements
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Apr 12, 2023 5:41 pm by කිත්සිරි ද සිල්වා

» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
LION.N0000 (Lion Brewery Ceylon PLC) EmptyThu Apr 06, 2023 3:18 pm by කිත්සිරි ද සිල්වා

» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්‍රතික්ෂේප කළ ගණිතඥයා
LION.N0000 (Lion Brewery Ceylon PLC) EmptySun Apr 02, 2023 7:28 am by කිත්සිරි ද සිල්වා

» SEYB.N0000 (Seylan Bank PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyThu Mar 30, 2023 9:25 am by yellow knife

» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
LION.N0000 (Lion Brewery Ceylon PLC) EmptyThu Mar 30, 2023 9:25 am by HaeroMaero

» The Korean Way !
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Mar 29, 2023 7:09 am by කිත්සිරි ද සිල්වා

» In the Meantime Within Our Shores!
LION.N0000 (Lion Brewery Ceylon PLC) EmptyMon Mar 27, 2023 5:51 pm by කිත්සිරි ද සිල්වා

» What is Known as Dementia?
LION.N0000 (Lion Brewery Ceylon PLC) EmptyFri Mar 24, 2023 10:09 am by කිත්සිරි ද සිල්වා

» SRI LANKA TELECOM PLC (SLTL.N0000)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyMon Mar 20, 2023 5:18 pm by කිත්සිරි ද සිල්වා

» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyMon Mar 20, 2023 5:10 pm by කිත්සිරි ද සිල්වා

» Equinox ( වසන්ත විෂුවය ) !
LION.N0000 (Lion Brewery Ceylon PLC) EmptyMon Mar 20, 2023 4:28 pm by කිත්සිරි ද සිල්වා

» COMB.N0000 (Commercial Bank of Ceylon PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptySun Mar 19, 2023 4:11 pm by කිත්සිරි ද සිල්වා

» REXP.N0000 (Richard Pieris Exports PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptySun Mar 19, 2023 4:02 pm by කිත්සිරි ද සිල්වා

» RICH.N0000 (Richard Pieris and Company PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptySun Mar 19, 2023 3:53 pm by කිත්සිරි ද සිල්වා

» Do You Have Computer Vision Syndrome?
LION.N0000 (Lion Brewery Ceylon PLC) EmptySat Mar 18, 2023 7:36 am by කිත්සිරි ද සිල්වා

» LAXAPANA BATTERIES PLC (LITE.N0000)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyThu Mar 16, 2023 11:23 am by කිත්සිරි ද සිල්වා

» What a Bank Run ?
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Mar 15, 2023 5:33 pm by කිත්සිරි ද සිල්වා

» 104 Technical trading experiments by HUNTER
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Mar 15, 2023 4:27 pm by katesmith1304

» GLAS.N0000 (Piramal Glass Ceylon PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Mar 15, 2023 7:45 am by කිත්සිරි ද සිල්වා

» Cboe Volatility Index
LION.N0000 (Lion Brewery Ceylon PLC) EmptyTue Mar 14, 2023 5:32 pm by කිත්සිරි ද සිල්වා

» AHPL.N0000
LION.N0000 (Lion Brewery Ceylon PLC) EmptySun Mar 12, 2023 4:46 pm by කිත්සිරි ද සිල්වා

» TJL.N0000 (Tee Jey Lanka PLC.)
LION.N0000 (Lion Brewery Ceylon PLC) EmptySun Mar 12, 2023 4:43 pm by කිත්සිරි ද සිල්වා

» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptySun Mar 12, 2023 4:41 pm by කිත්සිරි ද සිල්වා

» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
LION.N0000 (Lion Brewery Ceylon PLC) EmptyFri Mar 10, 2023 4:43 pm by yellow knife

» Bitcoin and Cryptocurrency
LION.N0000 (Lion Brewery Ceylon PLC) EmptyFri Mar 10, 2023 1:47 pm by කිත්සිරි ද සිල්වා

» CSD.N0000 (Seylan Developments PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyFri Mar 10, 2023 10:38 am by yellow knife

» PLC.N0000 (People's Leasing and Finance PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyThu Mar 09, 2023 8:02 am by කිත්සිරි ද සිල්වා

» Bakery Products ?
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Mar 08, 2023 5:30 pm by කිත්සිරි ද සිල්වා

» NTB.N0000 (Nations Trust Bank PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptySun Mar 05, 2023 7:24 am by කිත්සිරි ද සිල්වා

» Going South
LION.N0000 (Lion Brewery Ceylon PLC) EmptySat Mar 04, 2023 10:47 am by කිත්සිරි ද සිල්වා

» When Seagulls Follow the Trawler
LION.N0000 (Lion Brewery Ceylon PLC) EmptyThu Mar 02, 2023 10:22 am by කිත්සිරි ද සිල්වා

» Re-activating
LION.N0000 (Lion Brewery Ceylon PLC) EmptySat Feb 25, 2023 5:12 pm by කිත්සිරි ද සිල්වා

» අපි තමයි හොඳටම කරේ !
LION.N0000 (Lion Brewery Ceylon PLC) EmptyTue Feb 14, 2023 3:54 pm by ruwan326

» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
LION.N0000 (Lion Brewery Ceylon PLC) EmptyTue Jan 03, 2023 6:43 pm by ruwan326

» SAMP.N0000 (Sampath Bank PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Nov 30, 2022 8:24 am by කිත්සිරි ද සිල්වා

» APLA.N0000 (ACL Plastics PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptyFri Nov 18, 2022 7:49 am by කිත්සිරි ද සිල්වා

» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
LION.N0000 (Lion Brewery Ceylon PLC) EmptyWed Nov 16, 2022 9:28 pm by කිත්සිරි ද සිල්වා

» Banks, Finance & Insurance Sector Chart
LION.N0000 (Lion Brewery Ceylon PLC) EmptyTue Nov 15, 2022 5:26 pm by කිත්සිරි ද සිල්වා

» VPEL.N0000 (Vallibel Power Erathna PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptySun Nov 13, 2022 12:15 pm by කිත්සිරි ද සිල්වා

» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
LION.N0000 (Lion Brewery Ceylon PLC) EmptyMon Nov 07, 2022 6:36 pm by කිත්සිරි ද සිල්වා

» WATA - Watawala
LION.N0000 (Lion Brewery Ceylon PLC) EmptySat Nov 05, 2022 8:44 am by කිත්සිරි ද සිල්වා

» KFP.N0000(Keels Food Products PLC)
LION.N0000 (Lion Brewery Ceylon PLC) EmptySat Nov 05, 2022 8:42 am by කිත්සිරි ද සිල්වා

» Capital Trust Broker in difficulty?
LION.N0000 (Lion Brewery Ceylon PLC) EmptyFri Oct 21, 2022 5:25 pm by කිත්සිරි ද සිල්වා

» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
LION.N0000 (Lion Brewery Ceylon PLC) EmptyThu Oct 20, 2022 10:13 am by කිත්සිරි ද සිල්වා

» What Industry Would You Choose to Focus?
LION.N0000 (Lion Brewery Ceylon PLC) EmptyTue Oct 11, 2022 6:39 pm by කිත්සිරි ද සිල්වා

» Should I Stick Around, or Should I Follow Others' Lead?
LION.N0000 (Lion Brewery Ceylon PLC) EmptyTue Oct 11, 2022 9:07 am by කිත්සිරි ද සිල්වා

» DV-2024 Program: Online Registration
LION.N0000 (Lion Brewery Ceylon PLC) EmptyThu Oct 06, 2022 11:26 am by කිත්සිරි ද සිල්වා

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+4
The Alchemist
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yellow knife
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    LION.N0000 (Lion Brewery Ceylon PLC)

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    Post by yellow knife Fri Sep 18, 2015 4:54 pm

    Entire financial intermediation process of the world is highly regulated by respective independent regulators. However very rarely the food and beverage sector is regulated to that extent.

    LION annual report 2014/15 discuss about highly regulated industry. Further as per annual report more than 82% of its earnings is paid back to government as tax being a well organized company where all activities are within the limits of legal environment. However 22% of the country's liqour consumption is still fulfilled by illegal means reducing government's revenue.

    Revenue from LION is bigger than large NBFIs in SL

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    Post by yellow knife Fri Sep 18, 2015 4:55 pm

    Revenue was continuously growing providing more revenue for government

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    Post by yellow knife Fri Sep 18, 2015 5:04 pm

    However if we isolate PAT , we cannot see the same growth as with Sales revenue. Government tax has eaten up the profit after tax to reach a plateau

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    Post by yellow knife Fri Sep 18, 2015 5:05 pm

    I have seen the price of Food and Beverage company shares grow very much faster than its earnings or dividends

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    Post by yellow knife Fri Sep 18, 2015 5:06 pm

    Market value is not linked to Net Assets as well

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    Post by yellow knife Fri Sep 18, 2015 5:08 pm

    Food and Beverage sector maintain a higher PE ratio and following is PE ration of LION.N

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    Post by yellow knife Fri Sep 18, 2015 5:09 pm

    EPS and Dividends have reached a plateau

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    Post by yellow knife Fri Sep 18, 2015 5:13 pm

    LION.N is trading at 625 and AHPL.N is trading at 60.80 ..( as at 18th Sept 2015 )
    Even though LION trades 10 times more than AHPL both pay same dividends...

    That shows the different treatment by investors for hotel sector and food and beverage sector..

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    Post by yellow knife Fri Sep 18, 2015 5:17 pm

    Many Sri Lankan companies are now trying to export their production and to GO-GLOBAL..

    But for many such the panacea is Maldives.

    LION.N products are the leading in Maldives. Further the company continue to invest in US. Company is placing particular emphasis on New York City where the company is employing their own sales staff.
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    Post by yellow knife Fri Sep 18, 2015 5:21 pm

    During the year revenue form exports reached Rs 369 Million , a growth of 29% in comparison to the previous year.

    369 million out of 32 Billion revenue is not quantitatively high but signals the direction of trying to reach the world market in a highly brand-loyal liquor industry.
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    Post by yellow knife Fri Sep 18, 2015 5:40 pm

    Liquor is one area targeted in each budget by government

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    Post by yellow knife Fri Sep 18, 2015 5:42 pm

    Summarized contribution to government

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    Post by Defender Sat Sep 19, 2015 7:24 am

    thanks. Continue your great service!
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    Post by yellow knife Tue Oct 06, 2015 7:23 am

    Beer up by Rs 40 per liter (alcohol below 5%) & Rs 60 per liter (alcohol over 5%) from today....

    Ada Derana SMS on3rd Oct 2015


    Lets just compare one big NBFI sector player PLC with LION to get an idea of how Taxes of various forms affect Liquor/ Beer and finally LION.N

    Revenue of PLC and LION

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    Post by yellow knife Tue Oct 06, 2015 7:24 am

    PAT of both companies

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    Post by yellow knife Tue Oct 06, 2015 7:25 am

    Remember an amount almost equal to total revenue of the biggest NBFI is paid as taxes already by LION.

    And that's before implementing the new tax formula.



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    Post by yellow knife Fri Jul 15, 2016 9:19 am

    We are again looking at LION after reading Annual Report 2015/16.

    Sri Lanka often found heroes from time to time.  රණවිරුවා was highlighted character during War era and thank to him today we the investors enjoy our returns. Next we found රටවිරුවා who bring forex for us.
    Yet no one highlighted the real Hero...බේබද්දා due to religious reasons. Yet the above chart shows how important is බේබද්දා .

    So we are evaluating third largest taxpayer to the government...

    **************************************


    The revenue line fit perfectly so far with performance.
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    Post by yellow knife Fri Jul 15, 2016 9:22 am

    EPS recorded best ever. Yet next year is a challenge due to flood which destroyed its brewery ability at  Biyagama, Kaudwela.

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    Post by yellow knife Fri Jul 15, 2016 9:24 am

    Like in many F&B companies, the market value remains high
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    Post by yellow knife Fri Jul 15, 2016 9:25 am

    Dividends remain stable

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    Post by yellow knife Fri Jul 15, 2016 9:27 am

    PAT increased substantially for the year.

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    Post by yellow knife Fri Jul 15, 2016 9:56 am

    Government used to squeeze the gold egg laying hen without killing it so far.

    Exercise Duty on Beer was increased on tow occasions within a narrow time frame. The first was in October 2015 where the tax was increased by 27% on mild beer and by 32% on strong beer.
    In November 2015 taxes on strong beer were raised by further 29%.

    This time a marginal reduction in the tax on mild beer was announced, only to be retracted within few days.

    Thus within a period of two months excise duty on strong beer increased by a staggering 70% collectively.

    Yet other hard liquor duty increased only by 25%.

    Post these increases, industry volumes fell immediately, by nearly 40% and is yet to recover. Based on available evidence, the volume lost by the beer industry has gone to other sectors but as per known data arrack sector has gained but marginally.
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    Post by yellow knife Fri Jul 15, 2016 10:11 am

    We often talked about Super Human Beings working in Korea or Japan. But LION mention how their employees tried best to protect the company during flood while the houses of the same employees were badly affected.

    *****************************************

    A post balance sheet event , flood affected to the brewery factory first time in history. Insurance coverage will be sufficient to cover the damages.
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    Post by yellow knife Mon Aug 01, 2016 4:24 pm

    The third Biggest tax payer of the land has got a due concession .


    Following is what I quote with relevant sources.


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     60% tax concession


    The Company’s Annual Report for 2015 states that is the third largest taxpayer in the country. In the financial year 2015, excise taxes paid was Rs 20.2 billion whilst corporate taxes amounted to Rs. 878 million and has been lobbying for ‘more consumer and investor-friendly taxes’ on beer. In layman’s language, the company is campaigning for lower excise rates for beer. This is despite earning profits (I.e. PAT- Profit after tax) amounting to a staggering Rs. 2,080,54500 for 2015 recording a shocking 56.39% increase from a PAT of Rs. 1,330,320 recorded in 2014.


    It is learnt that during the tax holiday awarded till November, Lion Breweries has already imported an astounding 200,000 litres of beer into the country, depriving a staggering Rs 72 million of tax rupees to the government hitherto and had also ordered consignments amounting to another 2,000 containers.
    Sources say that the total tax monies lost to the state would amount to Rs 5,565 million as at existing capacity but would incur more losses in the event Lion imports more.


    - See more at: [You must be registered and logged in to see this link.]
    It is learnt that during the tax holiday awarded till November, Lion Breweries has already imported an astounding 200,000 litres of beer into the country, depriving a staggering Rs 72 million of tax rupees to the government hitherto and had also ordered consignments amounting to another 2,000 containers.
    Sources say that the total tax monies lost to the state would amount to Rs 5,565 million as at existing capacity but would incur more losses in the event Lion imports more.
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    60% tax concession for Lion Breweries
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    Post by Backstage Fri Mar 17, 2017 9:56 am

    Lion Brewery after the flood
    The maker of Lion Beer took nearly half a year to get its brewery back in full operation after floods destroyed machinery worth Rs2.9 billion
    March 15, 2017
    4 min read

    Listed beer maker Lion Brewery Ceylon’s 75 million litre per annum brewery is back in full operation after floods in May 2016 shut it down for nearly six months. Sales of popular local beer Lion, and Carlsberg, plummeted despite tax concessions to import beer for resale here.
    7 feet

    Height of the flood waters that inundated the brewery
    57%

    Drop in beer sales to Rs15 billion in the nine months to December 2016
    130%

    Drop in profits to a Rs613 million loss at end-December 2016


    Impacts from floods and high tax on Lion Brewery is temporary, says Fitch

    The credit rating agency expects sales to boom from 2017 due to rising incomes, urbanisation and tourism

    Floods invaded listed Lion Brewery Ceylon’s beer-making facility in May 2016, impeding operations for nearly six months. Shareholders responded by exiting the stock, but credit rating agency Fitch Ratings Lanka thinks the damage is temporary. Before the floods, Lion Brewery was taking a big hit from a tax policy that made ‘hard’ liquor like arrack cheaper. Since September 2015, the tax on beer increased 70%, driving down beer industry volumes by 40%, the company said in its December 2016 quarter filing. Taxes on arrack increased by just 25%, but sales grew 14% as consumers switched from beer. The Kelani River breaking banks is an annual occurrence during the south-western monsoon, inundating homes and roads for several days at Biyagama, a manufacturing zone 50 minutes west of Colombo.

    For 18 years, the floods never bothered the brewery there operated by Lion, a unit of listed conglomerate Carson Cumberbatch. The brewery was well protected by a flood-proof wall and pumps diverting any seepage back into the river. However, these proved ineffective when the south-western monsoon brought two whole days of non-stop rains in 2016, inundating the brewery with flood waters reaching up to seven feet.

    The flooding destroyed machinery, equipment and stocks on the ground level of the brewery, leaving enough beer for just 15 days demand. It took Lion Brewery about six months to normalise operations, according to available quarterly results filed for December 2016 and published in February 2017. Shareholder reaction to the flood’s impact on Lion Brewery was negative. The share price fell 14% from 17 May to 30 September 2016, as sales dropped 47% during this period and profits by 175%.

    During all this, Fitch Ratings Lanka remained unmoved. Despite the flooding, the brewer’s AA- rating was maintained with a Stable outlook, meaning that Fitch saw no reason to believe the rating would change in the short term. “Lion’s credit profile is supported by its market leadership, entrenched domestic brands and limited product substitution due to the high technical competence required for brewing beer in contrast to manufacturing spirits,” it said.

    Lion Brewery operates a plant brewing over 75 million liters of beer annually for two popular labels, Lion and Carlsberg, bottled and canned at its Biyagama plant. Its brands include Lion Lager, Lion Stout, Lion Strong, Carlsberg and Carlesberg Special Brew. Lion Beer, brewed to a 160- year recipe introduced by British occupiers, is popular among locals and tourists, and is exported to the US, Canada, the UK, Japan and the Maldives in small quantities. Exports contribute less than one per cent to total revenue, amounting to Rs35.5 billion in the year ending March 2016.

    To prevent local sales from going under, Denmark-based Carlsberg, which holds 25% of Lion Brewery, deployed four breweries it operates elsewhere in Asia to brew Lion Beer for the Sri Lankan market.

    Sourcing raw materials and the brewing process took weeks. Lion Brewery quickly restored its boilers, generators and pumps destroyed by the flooding, but replacing electric equipment and panelling took longer as it was sourced from overseas and made-to-order. By end-December 2016, the company had imported beer worth Rs687 million for resale here. For Fitch Ratings Lanka, the flooding and high taxation were temporary setbacks. “Beer sales will recover from 2018 financial year (which starts in April 2017) onwards, supported by rising urbanisation, increasing tourist arrivals and higher per capita income, helping the company gain lost market share,” the rating agency said in an August 2016 rating report.

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