Wednesday Nov 06, 2024
FT
Wednesday Nov 06, 2024
Thursday, 17 August 2023 00:30 - - {{hitsCtrl.values.hits}}
Chairman Chaaminda Ratnayake (left) and Managing Director
Marlan Ferreira
Exterminators PLC, has demonstrated resilience in the first quarter of Financial Year 2023/24 amidst challenges.
Despite challenging market conditions, the company has managed to maintain a positive trend in the first quarter of FY24. Undoubtedly, the past quarter has presented several challenges for their company. A series of factors, including the significant increase in corporate tax, the introduction of VAT and SSCL in previous quarters, and the unprecedented rise in personal income tax, have all impacted their revenue streams. One of their major revenue streams, the middle class, has been badly affected by the significant increase in personal income tax and prevailing inflation. For decades, this segment has been a key contributor, generating approximately one-fourth of their total revenue. However, the recent hike in personal income tax has significantly reduced the spending power of this crucial demographic. As a result, they have witnessed a decline in their consumption levels and, consequently, a notable decline in their revenue from this segment. Exterminators said while the past quarter has posed significant challenges for the company, it is through calculated and strategic responses that they were able to weather these obstacles and emerge stronger in the face of adversity.
As efforts paid off, the Company saw a 7% increase in revenue, gross profit by 21%, operating profit by 126%, and net profit by 125% compared to the immediate quarter ending 31.03.2023. Furthermore, when compared to the first quarter of FY 23, it experienced a 9% increase in revenue and a 2% increase in gross profit, with only a minor deduction of 1% in net profits. This positive trend is an encouraging sign for the future of the company.
During this period, Exterminators also expanded its operations by setting up a pest management business in London, marking its entry into the United Kingdom market.
The Company said rigorous standards and compliance requirements in the UK will be applied to Sri Lankan operations, enhancing their pest management standards, and creating more value for customers, employees, and shareholders.
Exterminators celebrated its 25th year in business and 15 years as an ISO 9001-certified pest management company. It also holds certifications in ISO 14001 environmental management system, ISO 45001 health and safety management system, and ISO 22000 food safety management system. These certifications reflect its commitment to excellence and our dedication to delivering high-quality services.
Exterminators also announced it has become a member of the esteemed Global Pest Management Coalition (GPMC), based in the United States. This membership further solidifies its position as a leader and expert in the industry. The mission of the GPMC is to provide a unified global platform that promotes the value of pest management in ensuring the protection of health, homes, food, and businesses. By being a part of the GPMC, it gains access to a vast network of industry leaders and influencers, allowing the Company to stay at the forefront of technological advancements, regulatory developments, and emerging trends.
Looking ahead, Exterminators said the Company is embarking on a journey of digital transformation powered by artificial intelligence. This transformation will revolutionise the processes, improve customer connectivity, optimise sales and technician functions, and enable the Company to deliver more efficient and effective services.
