Almas Group ups stake in Dankotuwa Porcelain to over 10%

• Likely to consolidate new entity as an associate with Almas owning 13% stake in DPL’s parent Ambeon Holdings 
• Strategy on DPL comes hot on the heels of converting Sierra Cables to an associate company and 10% acquisition of Asia Siyaka Commodities 

Almas Group yesterday revealed that it has increased its stake in Dankotuwa Porcelain PLC to over 10% in a move reinforcing its bullish outlook for fundamentally strong and high potential listed equities. 

The acquisition comes hot on the heels of buying up to 25% stake in Sierra Cables Plc and making it an association and 10% stake in Asia Siyaka Commodities PLC. 

In a disclosure to the CSE, Almas Group via a series of transactions over a period of time the 10% threshold was exceeded yesterday and the latest quantities were acquired at a range of prices up to Rs. 31.50 per share. 

As at end June 2022, Almas held just 5.3 million shares or 3.3%.

Yesterday 5.3 million shares of DPL changed hands via 1,737 trades for Rs. 167.7 million. It closed at Rs. 33.40, up by 22% or Rs. 6. Ambeon Holdings PLC is the biggest shareholder of DPL with around 77.5% stake but Daily FT learns it had shed 5%.

Almas Group owns 13.1% stake in Ambeon Holdings PLC which owns 46,783,358 shares, is representing a 13.11% of GREG indicating a further indirect holding of 10.16% (based on the 77.51% holding of DPL by Ambeon Holding PLC) in DPL. Accordingly, the Almas Group is in a position to consolidate the DPL’s financials as an Associate Company.

In the last financial year ended in 2021/22, despite many challenges, the group increased in local sales by 58% compared to the previous year 2020/21. The biggest contribution was from brand “Dankotuwa” with an increase of 68% whereas the subsidiary Royal Fernwood Porcelain Ltd sales grew by 44% in the same period. 

DPL Group posted a 55% growth in revenue for the financial year 2021/22 recording Rs. 3.76 billion against Rs. 2.43 billion  in 2020/21.  The Group Gross Profit was Rs. 1.20 billion, which was a 90% growth compared to Rs. 635.49 million in previous year and the Profit before Tax (PBT) was recorded at Rs. 210.70 million, compared to a loss of Rs. 395.96 million. 

In the first quarter of FY 2022/23 the company outperformed all historic financial figures by recording an impressive growth in top line where Revenue grew by 81% to 1.4 billion against 787 million in the previous first quarter and profit after tax recording a 491% growth to read as 298 million. In the same quarter the EPS was recorded as Rs. 1.80 against 0.30 cents which is a significant growth of 482% comparatively. 

DPL is striving to be Asia’s leader in marketing Porcelain tableware and has recorded an impressive year of performance during 2021/22, continuing to grow business in India, the Middle East, Europe, Scandinavia, the USA and Australian regions. 

DPL products are available in many countries under their own brand names of “Dankotuwa” and “Royal Fernwood”, whilst serving prestigious brands such as Lenox, Macy’s, Portmeirion, Dansk, Caskata, Oneida, NEXT, Jashanmal, Crate & Barrel, Country Road, NotNeutral, VEGA, Porsgrund, Paul, Migros, Narumi, Berghoff, Yalco, Weissestal, Silsal Design House, Wallace & Co, Kashida, Manses Design and Nordic Nest which have been designed to meet the highest customer demands of various regions. 

DPL’s presence in the global market increased substantially during the last financial year recording a growth of 52% which was mainly attributable to the new product developments and the growth across the regions.