JAT records 43% Q4 PAT growth and 53% YOY revenue increase in Bangladesh

• Highest turnover of Rs. 11.5 billion
• Year-on-year turnover up 14%
• Alkyd Resin Plant and Binder Plant completed and operational
• Export sector growth increases by 53% 
• Dollarised revenues 33% of total revenue

Founder and MD Aelian Gunawardene

CEO Nishal Ferdinando

Emerging regional conglomerate and Sri Lanka’s market leader in wood coatings and brushes, JAT Holdings PLC recently released its financials for the fiscal year ended 31 March 2024. 

The results demonstrated the Group’s robust financial position and resilient growth, with a profitability of 43% over the 4th quarter of the previous year, to Rs. 447 million. Meanwhile, year-on-year (YoY) turnover increased by 14% to Rs. 11.5 billion to record the highest turnover ever achieved by JAT Holdings PLC. Overall Export Sector growth also rose by a healthy 53%, while local revenues grew by 14%. 

Driven by its expansion and operations in Bangladesh, which are progressing at a brisk pace, Dollarised Revenues increased to 33% of total revenue for FY 2023/24, compared with 25% in FY 2022/23, contributing to Rs. 3,608 billion of total revenues in the year under review. However, Profit After Tax (PAT) for FY 2023/24 dipped by 21%, driven by a conscious investment into international expansion and into consolidating JAT’s market-leading position through increased brand building and promotional activities. These are intended to consolidate market share and brand equity, whilst furthering JAT’s overseas expansion efforts across Africa, Australia and South Asia. 

Commenting on the Group’s financial performance, JAT Holdings PLC CEO Nishal Ferdinando said, “Fiscal year 2023/24 was a year of contrasts, with the 1st half inheriting many of the challenges witnessed in 2022. However, thanks to prudent policy action and necessary regulatory intervention, the Sri Lankan economy made a remarkable turnaround, delivering a sound recovery in the 2nd half, particularly in the final quarter. Accordingly, our focus too has shifted from short-term subsistence towards a broader long-term strategy, which includes a focus on investing into consolidating our brand equity as the No.1 brand in the wood coating and brushes space. Meanwhile, our growth has been further sustained and boosted by our overseas operations, which are now bearing fruit. Therefore, we are now suitably positioned to capitalise on the emergent economic recovery in Sri Lanka and the favourable economic conditions in overseas markets.”

Revenues from JAT’s Bangladesh operations increased by 50%, despite the Sri Lanka Rupee appreciating against the Bangladeshi Taka, compared to the previous year. Accordingly, in terms of the functional currency, JAT Bangladesh has recorded a truly impressive growth of 110% during the year under review. Meanwhile, JAT’s new Alkyd Resin Plant and Binder Plant, in Bangladesh and Sri Lanka, respectively, came online in February and March of 2024. This much-awaited development is slated to drive a further surge in revenues during FY 2024/25. 

JAT Holdings Founder and Managing Director Aelian Gunawardene said: “Having invested heavily into overseas expansion and reinforcing our market leading position, whilst continuing to deliver exceptional value to stakeholders, we are now poised to deliver sustained long-term growth. Our positioning ensures we are ready to take advantage of Sri Lanka’s economic recovery, whilst also capitalising on emerging opportunities in our overseas markets.”

“Our focus now is in driving further rapid overseas expansion, particularly in Bangladesh, but also across East Africa, the ASEAN region, and Australia, to support our growth aspirations both in the medium and long-term. I take this opportunity to thank our customers and stakeholders for their continued loyalty and trust in JAT,” he added.

JAT Holdings PLC is the market leader in wood coatings and brushes in Sri Lanka, with a dominant presence in the paints and luxury home and office furnishings segments. The conglomerate operates two state-of-the-art manufacturing facilities in Sri Lanka and Bangladesh, supported by an advanced Research and Development Centre in Sri Lanka, driving innovation and reinforcing its strong regional presence. Through its Alkyd Resin Plant in Bangladesh, and its Binder Plant in Sri Lanka, JAT benefits from backward vertical integration and enhanced cost efficiencies. Recognised for its financial stability, JAT holds a National Long-Term Rating of ‘AA(lka)’ from Fitch Ratings, while also being consistently ranked among the Most Awarded Entities, Most Loved Brands, Most Respected Entities, and Top 100 Listed Companies by LMD, reflecting its industry-leading position. Furthermore, its certification as a Great Place to Work underscores JAT’s commitment to its employees, making it an employer of choice.