Dankotuwa Group sustains laudable performance

Dankotuwa Porcelain Chairman Yudhishtran Kanagasabai

Dankotuwa Porcelain Chief Executive Officer Channa Gunawardana

• Group records PBT of Rs. 229 m for 3Q and Rs. 864 m for nine months
• PBT margin for Group for YTD Q3 was 19% as against 7% a year earlier
• YTD Q3 Group Revenue  up 64% to Rs. 4.46 b; 3Q revenue up 47% to Rs. 1.62 b
• 3Q Group PBT margin at 14% as against 4% a year ago

Dankotuwa Porcelain PLC (DPL), said yesterday it has recorded impressive results for the third quarter of the financial year 2022/23.

The Group continued to pursue its growth strategy, in challenging times, and this perseverance enabled the Group to post impressive third quarter (Q3) results. As businesses in Sri Lanka are navigating through a challenging business environment, the results achieved by Dankotuwa Group demonstrates business stability and sustainability. 

For the quarter ended 31 December 2022, Dankotuwa Porcelain PLC as a Group (including its subsidiary Royal Fernwood Porcelain Ltd. – RFPL) increased revenue by 47% to Rs. 1.62 billion. The Group achieved an overall Gross Profit (GP) of Rs. 503 million, up 45% from a year earlier. 

The Group recorded a PBT of Rs. 229 million for the third quarter and Rs. 864 million for the nine months ended 31 December 2022 (YTD Q3). This achievement of the group is attributed to the increase in National Sales which recorded an 87% increase for YTD of 2022/23 compared to the corresponding period of last year, along with International Sales recording a 49% increase for the same period. 

The subsidiary (Royal Fernwood Porcelain Ltd.) has shown a laudable turnaround increasing the nine month turnover by 105% to Rs. 1.89 billion. RFPL achieved a GP of Rs. 610 million YTD Q3 of 2022/23, which when compared to that of 2021/22 demonstrated a tremendous growth. As far as PBT was concerned, Royal Fernwood Ltd. recorded Rs. 226 million YTD Q3 compared to the Loss before tax of Rs. 87 million recorded in YTD Q3 of 2021/22. 

Dankotuwa Porcelain PLC, as a company, achieved an increase of 119% to record a PBT of Rs. 638 million YTD Q3 of 2022/23. This was achieved with a 42% increase in sales and a 69% increase of GP of YTD Q3 2022/23 compared to corresponding period of last year 2021/22. The company, had a negative impact of Rs. 87 million for the quarter ended 31 December 2022, due to the change of income/capital gain tax rate to 30% with effect from 1 October 2022. This negative impact consisted of Rs. 33 million from Income tax and Rs. 54 million from differed tax. The impact of the change in the rate of income tax to the Group for the quarter ended 31 December 2022 has reduced by Rs. 43 million due to the differed tax asset being recorded in subsidiary (Royal Fernwood Porcelain Ltd.), and there is no income tax impact to subsidiary as it carries brought forward tax losses. Therefore, the net negative impact to Group was recorded as Rs. 44 million. Accordingly, Group recorded a PAT of Rs. 151 million for the third quarter and Rs. 674 million for the nine months ended 31 December 2022. 

Dankotuwa Porcelain PLC Chief Executive Officer Channa Gunawardana said: “Whilst we achieved our best performance in 2021/22, our success in 2022/2023 is a true indication of our business acumen and well thought out strategies.  It is a delight to see that we have continued to sustain our performance in 2022/23. As Sri Lanka steers through economic revival, we are committed to contribute to the much-needed economic growth by striving to achieve even better success through our exports. We continue to place our trust in our loyal customers in Sri Lanka, who have been instrumental in, us achieving the results indicated in our reports.” He further appreciated the invaluable contribution from all employees of DPL and RFPL who made this exceptional performance possible.