New Risk • 15h
New major risk - Revenue and earnings growth Earnings have declined by 3.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.3x net interest cover). Earnings have declined by 3.5% per year over the past 5 years. Minor Risk Market cap is less than US$100m (LK₨29.1b market cap, or US$88.2m). Reported Earnings • May 31
Full year 2026 earnings released: LK₨75.27 loss per share (vs LK₨181 profit in FY 2025) Full year 2026 results: LK₨75.27 loss per share (down from LK₨181 profit in FY 2025). Revenue: LK₨154.4b (up 43% from FY 2025). Net loss: LK₨15.5b (down 140% from profit in FY 2025). Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. New Risk • May 20
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: LK₨33.1b (US$98.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.08x net interest cover). Minor Risk Market cap is less than US$100m (LK₨33.1b market cap, or US$98.9m). New Risk • Mar 24
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: LK₨31.3b (US$99.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.8% net profit margin). Market cap is less than US$100m (LK₨31.3b market cap, or US$99.9m). New Risk • Mar 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.8% net profit margin). Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to LK₨204, the stock trades at a trailing P/E ratio of 17.4x. Average trailing P/E is 15x in the Trade Distributors industry in Asia. Total returns to shareholders of 72% over the past three years. Reported Earnings • Nov 17
Second quarter 2026 earnings released: LK₨25.35 loss per share (vs LK₨138 profit in 2Q 2025) Second quarter 2026 results: LK₨25.35 loss per share (down from LK₨138 profit in 2Q 2025). Revenue: LK₨43.1b (up 73% from 2Q 2025). Net loss: LK₨5.39b (down 118% from profit in 2Q 2025). Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • Sep 02
Brown and Company PLC, Annual General Meeting, Sep 26, 2025 Brown and Company PLC, Annual General Meeting, Sep 26, 2025, at 11:00 Sri Lanka Standard Time. Reported Earnings • Aug 22
First quarter 2026 earnings released: LK₨25.04 loss per share (vs LK₨19.36 loss in 1Q 2025) First quarter 2026 results: LK₨25.04 loss per share (further deteriorated from LK₨19.36 loss in 1Q 2025). Revenue: LK₨32.3b (up 56% from 1Q 2025). Net loss: LK₨5.32b (loss widened 29% from 1Q 2025). Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. New Risk • Jun 03
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.1x net interest cover). High level of non-cash earnings (24% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (7.3% average weekly change). Reported Earnings • Jun 03
Full year 2025 earnings released: EPS: LK₨152 (vs LK₨11.20 in FY 2024) Full year 2025 results: EPS: LK₨152 (up from LK₨11.20 in FY 2024). Revenue: LK₨107.8b (up 34% from FY 2024). Net income: LK₨38.5b (up LK₨36.1b from FY 2024). Profit margin: 36% (up from 3.0% in FY 2024). Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 15% per year. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: LK₨14.78 (vs LK₨44.04 in 3Q 2024) Third quarter 2025 results: EPS: LK₨14.78 (down from LK₨44.04 in 3Q 2024). Revenue: LK₨30.1b (up 65% from 3Q 2024). Net income: LK₨3.14b (down 66% from 3Q 2024). Profit margin: 11% (down from 51% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. New Risk • Jan 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Sri Lankan stocks, typically moving 7.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (7.9% average weekly change). Minor Risk Large one-off items impacting financial results. Announcement • Dec 31
Brown and Company plc Announces Board and Committee Changes, Effective January 1, 2025 Brown and Company PLC announced that on 27 December 2024, as recommended by the Nomination and Governance Committee, the board approved the following changes to its board and subcommittees, effective from 1 January 2025. Mr. T K Bandaranayake and Mr. H P J De Silva, independent non-executive directors who are currently over 70 years old and have completed over 9 years service period, will retire from the board with effect from January 1, 2025. Mr. Sundararaj will be appointed as Senior Independent Director with effect from 1 January 2025. The subcommittees have been reconstituted as follows: Audit Committee: Mr. K. Sundararaj, Independent Non-executive Director, will serve as the Committee Chairman. Mr. Chitral Wijesinha, Independent Non-executive Director, will be a member. Mrs. K U Amarasinghe, Non-executive Director, will be a member. Nomination & Governance Committee: Mr. Chitral Wijesinha, Independent Non-executive Director, will serve as the Committee Chairman. Mr. K. Sundararaj, Independent Non-executive Director, will be a member. Mrs. K U Amarasinghe, Non-executive Director, will be a member. Related Party Transactions Review Committee: Mr. Chitral Wijesinha, Independent Non-executive Director, will serve as the Committee Chairman. Mr. K. Sundararaj, Independent Non-executive Director, will be a member. Mr. W D K Jayawardena, Non-executive Director, will be a member. Mrs. K U Amarasinghe, Non-executive Director, will be a member. Talent Development & Remuneration Committee: Mr. K. Sundararaj, Independent Non-executive Director, will serve as the Committee Chairman. Mr. Chitral Wijesinha, Independent Non-executive Director, will be a member. Mrs. K U Amarasinghe, Non-executive Director, will be a member. New Risk • Dec 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Large one-off items impacting financial results. Reported Earnings • Nov 15
Second quarter 2025 earnings released: EPS: LK₨138 (vs LK₨12.34 in 2Q 2024) Second quarter 2025 results: EPS: LK₨138 (up from LK₨12.34 in 2Q 2024). Revenue: LK₨24.9b (up 50% from 2Q 2024). Net income: LK₨29.4b (up LK₨26.8b from 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. New Risk • Sep 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 4.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.09x net interest cover). Earnings have declined by 6.0% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (4.5% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (LK₨23.3b market cap, or US$77.0m). Announcement • Sep 03
Brown and Company PLC, Annual General Meeting, Sep 26, 2024 Brown and Company PLC, Annual General Meeting, Sep 26, 2024, at 11:00 Sri Lanka Standard Time. Reported Earnings • Aug 16
First quarter 2025 earnings released First quarter 2025 results: Revenue: LK₨20.8b (down 4.3% from 1Q 2024). Net loss: LK₨4.12b (loss narrowed 33% from 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Reported Earnings • Jun 04
Full year 2024 earnings released: LK₨3.66 loss per share (vs LK₨29.30 loss in FY 2023) Full year 2024 results: LK₨3.66 loss per share (improved from LK₨29.30 loss in FY 2023). Revenue: LK₨80.6b (up 11% from FY 2023). Net loss: LK₨777.8m (loss narrowed 88% from FY 2023). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to LK₨110, the stock trades at a trailing P/E ratio of 4.5x. Average trailing P/E is 15x in the Trade Distributors industry in Asia. Total loss to shareholders of 36% over the past three years. Reported Earnings • Feb 16
Third quarter 2024 earnings released: EPS: LK₨44.04 (vs LK₨26.17 loss in 3Q 2023) Third quarter 2024 results: EPS: LK₨44.04 (up from LK₨26.17 loss in 3Q 2023). Revenue: LK₨18.3b (down 12% from 3Q 2023). Net income: LK₨9.36b (up LK₨14.9b from 3Q 2023). Profit margin: 51% (up from net loss in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Reported Earnings • Nov 17
Second quarter 2024 earnings released: EPS: LK₨12.34 (vs LK₨12.82 loss in 2Q 2023) Second quarter 2024 results: EPS: LK₨12.34 (up from LK₨12.82 loss in 2Q 2023). Revenue: LK₨16.6b (up 8.5% from 2Q 2023). Net income: LK₨2.62b (up LK₨5.35b from 2Q 2023). Profit margin: 16% (up from net loss in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • Sep 02
Brown and Company PLC, Annual General Meeting, Sep 26, 2023 Brown and Company PLC, Annual General Meeting, Sep 26, 2023, at 12:00 Sri Lanka Standard Time. Agenda: To consider and receive the directors' report, statement of accounts and auditors' report for the year ended March 31, 2023; to consider the election of Mr. T. Sanakan as an executive director; to consider the reelection of Mr. Kapila Jayawardena as non-executive director; to reappoint Mr. Janaka de Silva as an independent non-executive director; and to discuss other business matters. Reported Earnings • Aug 16
First quarter 2024 earnings released: LK₨28.84 loss per share (vs LK₨13.08 profit in 1Q 2023) First quarter 2024 results: LK₨28.84 loss per share (down from LK₨13.08 profit in 1Q 2023). Revenue: LK₨21.7b (up 19% from 1Q 2023). Net loss: LK₨6.13b (down 321% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 21% per year and the company’s share price has also increased by 21% per year. Reported Earnings • Jun 02
Full year 2023 earnings released: LK₨28.76 loss per share (vs LK₨102 profit in FY 2022) Full year 2023 results: LK₨28.76 loss per share (down from LK₨102 profit in FY 2022). Revenue: LK₨72.7b (up 44% from FY 2022). Net loss: LK₨6.11b (down 128% from profit in FY 2022). Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 16
Third quarter 2023 earnings released: LK₨26.17 loss per share (vs LK₨0.74 loss in 3Q 2022) Third quarter 2023 results: LK₨26.17 loss per share (further deteriorated from LK₨0.74 loss in 3Q 2022). Revenue: LK₨20.7b (up 72% from 3Q 2022). Net loss: LK₨5.56b (loss widened LK₨5.41b from 3Q 2022). Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 17
Second quarter 2023 earnings released: LK₨12.82 loss per share (vs LK₨1.06 loss in 2Q 2022) Second quarter 2023 results: LK₨12.82 loss per share (further deteriorated from LK₨1.06 loss in 2Q 2022). Revenue: LK₨15.3b (up 33% from 2Q 2022). Net loss: LK₨2.73b (loss widened LK₨2.50b from 2Q 2022). Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Non Executive Director Tissa Bandaranayake was the last independent director to join the board, commencing their role in 2014. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Sep 03
Brown and Company PLC, Annual General Meeting, Sep 29, 2022 Brown and Company PLC, Annual General Meeting, Sep 29, 2022, at 10:00 Sri Lanka Standard Time. Location: LOLC Holdings PLC, No.100/1, Sri Jayawardenapura Mawatha Rajagiriya Sri Lanka Agenda: To receive and consider the Report of the Directors and Statement of Accounts of the Company for the Financial Year ended 31 March 2022 with the Auditors' Report thereon; to re-elect Mrs. Kalsha Amarasinghe as a Non-Executive Director who retires by rotation in accordance with Article 24(6) of the Articles of Association of the Company; to re-appoint Mr. Janaka de Silva as an Independent Non-Executive Director; and to transact other matters. Reported Earnings • Aug 18
First quarter 2023 earnings released: EPS: LK₨13.08 (vs LK₨2.95 loss in 1Q 2022) First quarter 2023 results: EPS: LK₨13.08 (up from LK₨2.95 loss in 1Q 2022). Revenue: LK₨18.2b (up 99% from 1Q 2022). Net income: LK₨2.78b (up LK₨3.41b from 1Q 2022). Profit margin: 15% (up from net loss in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jun 02
Full year 2022 earnings released: EPS: LK₨96.01 (vs LK₨0.075 loss in FY 2021) Full year 2022 results: EPS: LK₨96.01 (up from LK₨0.075 loss in FY 2021). Revenue: LK₨50.5b (up 72% from FY 2021). Net income: LK₨20.4b (up LK₨20.4b from FY 2021). Profit margin: 41% (up from net loss in FY 2021). Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Non Executive Director Tissa Bandaranayake was the last independent director to join the board, commencing their role in 2014. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 18
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: LK₨0.74 loss per share (down from LK₨0.84 profit in 3Q 2021). Revenue: LK₨12.0b (up 77% from 3Q 2021). Net loss: LK₨157.6m (down 188% from profit in 3Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 144 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 16
Second quarter 2022 earnings released: LK₨1.06 loss per share (vs LK₨2.96 profit in 2Q 2021) The company reported a mediocre second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2022 results: Revenue: LK₨11.5b (up 40% from 2Q 2021). Net loss: LK₨225.9m (down 136% from profit in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 53% per year, which means it is well ahead of earnings. Reported Earnings • Aug 15
First quarter 2022 earnings released: LK₨2.95 loss per share (vs LK₨3.74 loss in 1Q 2021) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2022 results: Revenue: LK₨9.13b (up 107% from 1Q 2021). Net loss: LK₨627.3m (loss narrowed 21% from 1Q 2021). Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 49% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorated over the past week After last week's 18% share price decline to LK₨144, the stock is trading at a trailing P/E ratio of 25.4x, down from the previous P/E ratio of 31x. This compares to an average P/E of 15x in the Trade Distributors industry in Asia. Total returns to shareholders over the past three years are 108%. Reported Earnings • Feb 17
Third quarter 2021 earnings released: EPS LK₨0.84 (vs LK₨2.43 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: LK₨6.78b (up 29% from 3Q 2020). Net income: LK₨179.6m (up LK₨696.2m from 3Q 2020). Profit margin: 2.6% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 36% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improved over the past week After last week's 29% share price gain to LK₨168, the stock is trading at a trailing P/E ratio of 69.9x, up from the previous P/E ratio of 54.1x. This compares to an average P/E of 14x in the Trade Distributors industry in Asia. Total returns to shareholders over the past three years are 135%. Is New 90 Day High Low • Jan 12
New 90-day high: LK₨141 The company is up 115% from its price of LK₨65.40 on 14 October 2020. The Sri Lankan market is up 24% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Trade Distributors industry, which is up 10.0% over the same period. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improved over the past week After last week's 16% share price gain to LK₨116, the stock is trading at a trailing P/E ratio of 48.3x, up from the previous P/E ratio of 41.5x. This compares to an average P/E of 14x in the Trade Distributors industry in Asia. Total returns to shareholders over the past three years are 55%. Is New 90 Day High Low • Dec 16
New 90-day high: LK₨103 The company is up 55% from its price of LK₨66.10 on 17 September 2020. The Sri Lankan market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Trade Distributors industry, which is up 4.0% over the same period. Valuation Update With 7 Day Price Move • Dec 09
Market bids up stock over the past week After last week's 28% share price gain to LK₨91.80, the stock is trading at a trailing P/E ratio of 38.2x, up from the previous P/E ratio of 29.8x. This compares to an average P/E of 14x in the Trade Distributors industry in Asia. Total returns to shareholders over the past three years are 17%. Valuation Update With 7 Day Price Move • Dec 01
Market bids up stock over the past week After last week's 19% share price gain to LK₨73.30, the stock is trading at a trailing P/E ratio of 30.5x, up from the previous P/E ratio of 25.6x. This compares to an average P/E of 14x in the Trade Distributors industry in Asia. Total return to shareholders over the past three years is a loss of 9.5%. Is New 90 Day High Low • Dec 01
New 90-day high: LK₨73.30 The company is up 9.0% from its price of LK₨67.20 on 02 September 2020. The Sri Lankan market is up 17% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Trade Distributors industry, which is up 1.0% over the same period. Reported Earnings • Nov 17
Second quarter 2021 earnings released: EPS LK₨2.96 The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: LK₨8.22m (down 100% from 2Q 2020). Net income: LK₨629.6k (up LK₨514.2m from 2Q 2020). Profit margin: 7.7% (up from net loss in 2Q 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. 
