Teejay records positive Q3 despite market challenges

Friday, 2 February 2024 00:06 - - {{hitsCtrl.values.hits}}

Chairman Ajit Gunewardene (left) and CEO Pubudu De Silva

Teejay Lanka PLC said yesterday it has maintained its positive trajectory in the third quarter of 2023-24, recording noteworthy pre- and post-tax profit growth for the three months ending 31 December 2023 and reversing the losses of the corresponding quarter of the previous year.

Sri Lanka’s first multinational textile manufacturer has reported profit before tax of Rs. 677.7 million for the third quarter of the financial year, as against a pre-tax loss of Rs. 24.4 million for the third quarter of 2022-23, recording a growth of 2870%.

The Group posted a net profit of Rs. 477.4 million for the three months, a gain of Rs. 843.3 million or 230% over the net loss of Rs. 366 million reported for the corresponding three months of the preceding year.

The Group’s revenue for the quarter reviewed at Rs. 15.9 billion, was down 12% over the Rs. 18.1 billion recorded in the corresponding quarter of the last financial year. Nevertheless, the Group’s top line improved by 2.2% over the figure for the second quarter of 2023-24, the Company said.

For the nine months ending 31 December 2023, Teejay Lanka reported a revenue of Rs. 45.44 billion, profit before tax of Rs. 1.2 billion, and net profit of Rs. 567 million, reflecting declines of 32%, 56% and 71% respectively over the first nine months of 2022-23.

Teejay Lanka Chairman Ajit Gunewardene said the consistent challenges presented by on-going industry uncertainties have prompted the Group to respond proactively by entering a recovery phase. This involves implementing strategies such as identifying new customer bases, introducing novel product segments, investing in advanced infrastructure, and enhancing skills to adapt to evolving industry dynamics. “These initiatives position Teejay Group effectively to meet the evolving needs of a dynamic market,” he added.

CEO Pubudu De Silva said positive outcomes were achieved due to a timely execution of strategic initiatives during the period under review, including stringent inventory management initiatives and effective cost reduction strategies. “The Group’s advantage due to its multinational footing offers it the flexibility to capitalise on its location advantages to optimise capacity utilisation and operational efficiency. Additionally, the sustained stability in yarn prices has positively contributed to the growth of the Group’s top-line and profitability,” he added.