JAT sees bottom line growth of 77% for Q1

• Revenues up by 3% to Rs. 2.2 b
• Financial and operational efficiency gains through backward vertical integration
• New SEAFORM kitchen showrooms in Australia and Bangladesh 
• Significant growth in wood coatings of 15% and paint brushes of 47% 
• Sustainability Award for Sound Chemical Management

Founder and MD Aelian Gunawardene

CEO Nishal Ferdinando

JAT Holdings PLC has announced strong growth in both its top- and bottom-line in the first quarter of FY25.

Revenues rose by 3% to Rs. 2.2 billion compared with the same period in the previous year, driven by noticeable growth in the wood coatings and paint brushes categories. Profit After Tax (PAT) also demonstrated significant growth, expanding by 77% YoY for the quarter under review to record Rs. 124 million, up from Rs. 70 million in the same quarter of the previous year. 

These achievements were driven by steady and growing sales, supported by efficiencies arising from JAT’s acrylic binder and alkyd resin plants coming online earlier in 2024. The Group expects these efficiencies to further support growth and profitability in the coming quarters, with it now producing binders for wood coatings and wall paint emulsions inhouse. This, together with further strengthening of its R&D, Marketing and Bangladesh operations, is expected to have significant positive outcomes for the Group’s balance sheet and financial performance indicators through FY 2024/25. 

The quarter under review also witnessed certain significant milestones with regard to JAT’s strategy to expand market share and drive overseas expansion. Accordingly, the Group made its inaugural shipment of wood coatings to Australia, while it also opened showrooms for SEAFORM – the German brand of luxury vanities and kitchens it represents – in both Australia and Bangladesh. During the quarter under review JAT was also able to record 41% growth in project sales, 15% growth in wood coatings including Sayerlack – its flagship wood coating product, and 47% growth in the paint brushes category. JAT Holdings PLC was also honoured at the Green Industry Awards 2024 with a Silver Award for “Sound Chemical Management”, underlining its commitment to sustainability and ecofriendly manufacturing. 

CEO Nishal Ferdinando said: “In a quarter where we experienced adverse weather conditions across Sri Lanka, we are proud to have been able to continue to achieve and drive growth in sales and revenue, leveraging our strong brand equity and operational efficiency. It’s also important to note that, while nominal export revenues declined marginally by 6%, on account of exchange rate volatility in the Bangladeshi Taka, our export volumes have remained steady. Thus, we remain firmly on our growth trajectory and will continue to work towards serving our customers and communities, and creating value for our stakeholders.”

JAT Holdings PLC also recorded a 5% growth in gross profits, though growth was subdued by unfavourable exchange rate volatility in the Bangladeshi Taka. However, operating profits contracted by 27%, due to rising overheads as the Group expands its operations in Bangladesh. Meanwhile, profit before tax grew by 37% against the same quarter in the previous year, on account of increased operational efficiencies and favourable movements in the exchange rate of the Sri Lankan Rupee. 

JAT Holdings PLC Founder and Managing Director Aelian Gunawardene said: “Relying on strategic decision-making, and leveraging the business acumen of our management team, we have been able to harness efficiencies across our supply chain, particularly in terms of our own acrylic binder and alkyd resin plants now being operational, to deliver exceptional value to our stakeholders. Furthermore, our heavy investments into marketing and customer loyalty programmes have demonstrably delivered, allowing us to keep sales steady, and even achieve growth, amidst adverse-weather-driven market conditions that generally result in a contraction in sales volumes for the industry. Thus, we remain committed to our growth strategy and to our loyal customers and communities, while also reaffirming our dedication to sustainable manufacturing.”