HATTON PLANTATIONS PLC | A | ANNUAL REPORT 2023 2024 |
HATTON PLANTATIONS PLC | ||
UNVEILING SUSTAINABLE SOLUTIONS | ||
ANNUAL REPORT |
With digital transformation of our field operations, and a complete ERP solution, we step forward, empowered in unveiling sustainable solutions beyond the leaf, that result
in enhanced productivity and
competitiveness.
HATTON PLANTATIONS PLC | D |
ANNUAL REPORT 2023 2024
OUR PURPOSE | OUR FUTURE |
"Growing Hatton Plantations to be | "To be the most admired Plantation |
the Industry Leader" | Company in Sri Lanka" |
OUR VALUES
Our Approach | Our Heritage | Our Solutions | Our Promise | Trust | ||||||||||
Integrity, Honesty, | Perseverance, | Innovation, | Responsibility, | The foundation | ||||||||||
open and | Never give up | Improvement | Accountability to | upon which we | ||||||||||
transparent | through | all stakeholders | grow | |||||||||||
continuous | ||||||||||||||
change |
HATTON PLANTATIONS PLC | 1 | ANNUAL REPORT 2023 2024 |
Contents
2...ABOUT OUR REPORT
4...ABOUT HATTON PLANTATIONS
6...OUR ESTATES AND FACTORIES
Performance Highlights
8...FINANCIAL HIGHLIGHTS
9...AWARDS AND ACCOLADES
10...HISTORICAL FINANCIAL INFORMATION
Corporate Leadership
14...CHAIRMAN'S MESSAGE
17...MANAGING DIRECTOR/CEO'S REVIEW
21...BOARD OF DIRECTORS
27...CORPORATE MANAGEMENT TEAM
Management Discussion and Analysis
29...OPERATING ENVIRONMENT
38...STAKEHOLDER REVIEW
40...FINANCIAL CAPITAL
44...STRATEGIC VALUE CREATION
46...MANUFACTURED CAPITAL
50...HUMAN CAPITAL
61...INTELLECTUAL CAPITAL
66...NATURAL CAPITAL
70...SOCIAL AND RELATIONSHIP CAPITAL
Governance and Risk
77...CORPORATE GOVERNANCE REPORT
93...RISK MANAGEMENT
105...ANNUAL REPORT OF THE BOARD OF DIRECTORS
110...DIRECTORS' STATEMENT ON INTERNAL CONTROLS
111...STATEMENTS OF DIRECTORS' RESPONSIBILITY
112...STATEMENT BY THE SENIOR INDEPENDENT DIRECTOR
113...REPORT OF THE AUDIT COMMITTEE
116...REPORT OF THE RELATED PARTY TRANSACTION REVIEW COMMITTEE
118...REPORT OF THE REMUNERATION AND NOMINATIONS COMMITTEE
119...RESPONSIBILITY STATEMENT OF MANAGING DIRECTOR/ CEO AND CHIEF FINANCIAL OFFICER
Financial Reports
120...FINANCIAL CALENDAR
121...INDEPENDENT AUDITOR'S REPORT
125...STATEMENT OF PROFIT OR LOSS
126...STATEMENT OF COMPREHENSIVE INCOME
127...STATEMENT OF FINANCIAL POSITION
129...CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
130...COMPANY STATEMENT OF CHANGES IN EQUITY
131...STATEMENT OF CASH FLOWS
132...NOTES TO THE FINANCIAL STATEMENTS
Supplementary Information and Annexures
206...ESTATE HECTARAGE STATEMENT
206...CROPS AND YIELDS
207...PERMANENT BUILDINGS ON ESTATES
208...SHAREHOLDERS' AND INVESTORS' INFORMATION
210...GLOSSARY
214...NOTES
215...NOTICE OF THE ANNUAL GENERAL MEETING
217...FORM OF PROXY
219...CORPORATE INFORMATION
HATTON PLANTATIONS PLC | 2 | ANNUAL REPORT 2023 2024 |
ABOUT OUR REPORT
HATTON PLANTATIONS PLC |
UNVEILING SUSTAINABLE SOLUTIONS |
ANNUAL REPORT |
The 7th Annual Report of Hatton Plantations PLC provides a comprehensive overview of the Group and the Company's performance and value creation for the financial year ended 31st March 2024. We are pleased to share that amidst many challenges for the agriculture sector, in particular the tea industry during the 12 months under review, Hatton Plantations has successfully overcome these challenges, reporting yet another profitable year for the Group and the company.
This report provides a comprehensive account of Hatton Plantations PLC Group and the Company's financial performance, strategic initiatives, and multiple stakeholder engagements that have led to the company's success. In our continuous efforts to provide the best quality products and in meeting the volumes in demand, the company has consistently invested in best practices, technology integration, and continuous monitoring and improvements.
Reporting Scope and Boundary
The financial and non-financial information of this report encloses the operations of Hatton Plantations PLC (HPL) and its 13 estates and 01 tea processing factory.
Reporting Cycle: Annual
Reporting period: 1 April 2023 to 31 March 2024
The most recent report was issued on: 1 April 2022 to 31 March 2023
The information related to the previous period has not been reinstated during this period, unless otherwise stated. There were no significant changes in the organization type, structure or ownership during the reporting period.
HATTON PLANTATIONS PLC | 3 | ANNUAL REPORT 2023 2024 |
Reporting Frameworks
The below-mentioned regulatory and voluntary frameworks were adopted in preparing this report.
Regulatory
- Companies Act No.7 of 2007
- Continued Listing Requirements of the Colombo Stock Exchange
- Sri Lanka Accounting & Auditing Standards Act No.15 of 1995
- Sri Lanka Financial Reporting Standards
Strategic focus and future orientation
The report shares strategies and their impact on value creation on capitals. The capitals identified in this report are:
- Financial capital
- Manufactures capital
- Human capital
- Intellectual capital
- Natural Capital
- Social and relationship capital
Stakeholder relationships
The report shares the relationships maintained with its multiple stakeholders and the value creation for each stakeholder category.
Conciseness
All the necessary and vital information is delivered concisely.
Reliability and completeness
An assurance on the financial and non-financial information has been provided by the external auditors, Deloitte Partners.
Consistency and comparability
The financial and non-financial information for the year under review and the comparable periods have been provided in the report.
Board Acknowledgement
The Annual report of Hatton Plantations PLC for the year ended 31st March 2024 has been prepared and reviewed by the Management of the Company who have recommended the same to the Group's Audit Committee and Board for their approval.
The Board acknowledges its responsibility to ensure the integrity of the Annual report which provides a balanced view of the performance of the Group and the Company, addressing all material issues that may have an impact on the Group's and the Company's capacity to create value over the short term. The Board is of the opinion that the Annual Report of Hatton Plantations PLC for the financial year ending 31st March 2024 is presented in accordance with best practices in reporting. The report was unanimously approved by the Board on 23rd August 2024 and is signed on behalf by:
For any inquiries, please contact, Mrs. Annemarie Outschoorn Chief Financial Officer Email:anne@hattonplantations.lk
Telephone: +94 11 4537703/ +94 76 0260589
Chairman | Audit Committee Chairman | Managing Director/CEO |
HATTON PLANTATIONS PLC | 4 | ANNUAL REPORT 2023 2024 |
ABOUT HATTON PLANTATIONS
The distinguished history of Hatton Plantations PLC is built on significant milestones that have been instrumental in shaping its evolution into one of Sri Lanka's premier tea plantation companies. From the initial privatization of regional plantation companies in 1992 to strategic joint ventures and pivotal management transitions, each development has played a crucial role in the Company's growth and diversification.
Key milestones in our history include:
ΠOn September 30, 2021, Hatton Plantations PLC acquired a 95.43% stake in Mark Marine Services (Private) Ltd, a hydro power company, investing Rs. 458.9 million
2021 as part of its diversification into various business sectors. Additionally, Hatton Plantations PLC expanded its diversification strategy to include the development of three holiday bungalows and a Tea Center in the Hatton and Watawala regions.
- On 28 May 2019, Estate Management Services (Pvt) Limited, the parent company of Hatton
2019 | Plantations PLC, sold a majority controlling stake in Hatton Plantations PLC to Lotus Renewable |
Energy (Private) Limited and its ultimate parent, Renewables (Singapore) Pte Ltd, through the | |
Colombo Stock Exchange at a price of LKR 8.30 per share. |
- A demerger resulted in the establishment of Hatton Plantations PLC, which was incorporated on 14
September 2017 as part of the restructuring undertaken by Watawala Plantations PLC under Section
2017 256 of the Companies Act No. 07 of 2007. Hatton Plantations PLC was formed to manage the existing upcountry tea business previously handled by Watawala Plantations PLC.
ΠEstate Management 1996 Services (Pvt) Ltd took
over the management of Watawala Plantations PLC.
- The Government privatized 22
1992 | regional plantation companies in |
Sri Lanka, leading to a joint venture | |
between Watawala Plantations PLC | |
and Tata Tea Ltd. of India. |
Hatton Plantations PLC boasts 13 estates covering a total area of 7,206 hectares in the regions of Watawala, Hatton, and Lindula, ranging from Western High to Western Medium elevations in Sri Lanka's central hills.
Hatton Plantations PLC has consolidated its position primarily on tea as one of the largest tea plantation companies in Sri Lanka, with a strong emphasis on innovation and value addition.
The Company has continued to build upon its established and proud reputation as one of the prime producers of pure Ceylon tea and continues to set new standards in the industry.
HATTON PLANTATIONS PLC | 5 | ANNUAL REPORT 2023 2024 |
Our Assets:
- 12 tea processing factories with a combined green leaf capacity of 155,500 kg per day.
- Use of Orthodox, CTC, Leafy, and Green Tea manufacturing methods supported by versatile production facilities.
- Production of high and medium-grown teas in the key regions of Watawala, Hatton, and Lindula.
Hatton Plantations PLC offers an extensive product range that includes over 35 grades of tea. Our commitment to sustainable agricultural practices and balanced nutrient intake ensures that our teas meet the highest quality standards. Our modern and well- equipped factories are designed to maximize liquoring characteristics while retaining the flavor and quality of the tea.
Moreover, approximately 95% of our tea is auctioned at the Colombo Tea Auction, while the remaining tea is sold directly to buyers. This strategy allows us to maintain a strong presence in both domestic and international markets, ensuring our high-quality teas reach a wide audience.
We are dedicated to advancing our enduring tradition of excellence and aim to be recognized as the foremost tea producer in Sri Lanka. Our commitment to innovation, ethical business practices, and sustainable development drives us to increase crops, yields and volumes, delivering top-quality tea for both local and global markets.
Our responsibility and pride lay in caring for an estate population of 43,746 individuals, including employees, their families, and estate communities, while ensuring sustainable contributions to the national economy.
13 estates over
7,206 hectares in Watawala, Hatton, & Lindula
12
tea processing
factories
35
grades of tea
95%
auctioned at the
Colombo Tea Auction
OUR ESTATES AND FACTORIES
LAND EXTENT | PRODUCTION | ||||||||
Revenue | Total | Crop with | |||||||
Total | Extent | Cultivated | Main | Factory | Bought | ||||
Name of Estate | Extent | Tea | Other | Extent Elevation Category | Crop Type of Factory | Elevation | Crop | ||
Ha | Ha | Ha | Ha | Meters | Kgs |
EMPLOYEES
Staff Workers
(Nos) (Nos)
HATTON PLANTATIONS PLC
Watawala Region | |||||||||||
Kenilworth | 600.86 | 246.86 | 190.50 | 437.36 | Western Medium Grown | Tea | Ortho/RV | 616 | 513,547 | 29 | 221 |
Carolina | 892.42 | 220.25 | 206.07 | 426.32 | Western Medium Grown | Tea | CTC | 960 | 441,647 | 21 | 177 |
Wigton | 667.58 | 111.85 | 122.15 | 234.00 | Western Medium Grown | Tea | - | 166,107 | 10 | 158 | |
Shannon | 262.04 | 171.34 | 30.83 | 202.17 | Western High Grown | Tea | Ortho/RV | 1372 | 540,998 | 30 | 161 |
Sub Total | 2,422.90 | 750.30 | 549.55 | 1,299.85 | 1,662,299 | 90 | 717 | ||||
Hatton Region | |||||||||||
Abbotsleigh | 427.46 | 245.66 | 116.59 | 362.25 | Western High Grown | Tea | CTC | 1330 | 1,590,291 | 31 | 345 |
Dickoya | 629.59 | 271.72 | 235.76 | 507.48 | Western High Grown | Tea | Ortho/RV | 1292 | 846,303 | 23 | 331 |
Vellaioya | 840.00 | 325.50 | 245.18 | 570.68 | Western Medium Grown | Tea | Ortho/RV | 1331 | 492,166 | 22 | 454 |
Strathdon | 644.39 | 258.13 | 249.24 | 507.37 | Western Medium Grown | Tea | CTC | 1112 | 575,040 | 25 | 357 |
Sub Total | 2,541.44 | 1,101.01 | 846.77 | 1,947.78 | 3,503,800 | 101 | 1,487 | ||||
Lindula Region | |||||||||||
Waltrim | 578.25 | 398.71 | 99.58 | 498.29 | Western High Grown | Tea | Ortho/RV | 1400 | 683,798 | 39 | 516 |
Henfold | 540.00 | 407.90 | 45.45 | 453.35 | Western High Grown | Tea | Ortho/RV | 1381 | 513,835 | 32 | 441 |
Tangakelle | 367.79 | 287.30 | 41.27 | 328.57 | Western High Grown | Tea | Ortho/RV | 1472 | 330,922 | 21 | 270 |
Agrakande | 228.75 | 145.00 | 60.00 | 205.00 | Western High Grown | Tea | Green Tea | 1369 | 223,730 | 15 | 241 |
Ouvahkelle | 527.25 | 255.84 | 160.20 | 416.04 | Western High Grown | Tea | Re-processing | 1573 | 270,683 | 26 | 319 |
Sub Total | 2,242.04 | 1,494.75 | 406.50 | 1,901.25 | 2,022,968 | 133 | 1,787 | ||||
Grand Total | 7,206.38 | 3,346.06 | 1,802.82 | 5,148.88 | 7,189,067 | 324 | 3,991 | ||||
6
ANNUAL REPORT 2023 2024
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