Cargills records strong Q3 performance; optimistic for 2025

Thursday, 13 February 2025 05:09 - - {{hitsCtrl.values.hits}}

Leading blue-chip company Cargills (Ceylon) PLC reported a strong bottom-line performance for the last quarter of 2024; driven by increased volumes across its key business segments—retail (supermarkets), consumer food (FMCG), and restaurants. For the three months ending December 2024, the company achieved a 9.1% increase in sales, totalling Rs. 61,865 million. EBITDA saw a significant rise of 19.8%, reaching Rs. 5,685 million, while Profit After Tax (PAT) grew by 47.8%, amounting to Rs 1,626 million. The Management highlighted that this growth in volumes reflects a broader strengthening of consumption across the Sri Lankan economy.

As a leading player in the Sri Lanka’s food and agriculture sector, Cargills is the top buyer of fresh produce and milk in the country, collecting directly from smallholder farmers across Sri Lanka through an outgrower farmer network. Last year alone, Cargills generated Rs. 19.8 billion in direct income for the farming community through its purchases of fruits, vegetables, and fresh milk, driving a substantial amount of money into the rural economy. The company has recently invested in digitalising its agriculture and dairy supply chains, which creates added benefits for local farmers who supply to Cargills. Additionally, Cargills is a major tax contributor, playing a key role as both a tax collector and a taxpayer in the country.

The Management noted that it expects demand to strengthen in 2025, driven by stable price levels, low interest rates, reductions in utility and energy prices, new tax relief for the middle class, and the expected public sector pay rise.

Cargills intends to continue its expansion plans, investing in new stores, capacity expansion for its factories, and new restaurants in the coming months, reflecting its positive outlook for the Sri Lankan economy.

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