Vallibel One reports Rs. 17.44 b net profit in FY24 amid challenges

Thursday, 6 June 2024 00:22 - - {{hitsCtrl.values.hits}}

Chairman Harsha Amarasekera

Managing Director Yogadinusha Bhaskaran

Despite a year marked by numerous challenges, Vallibel One Group said yesterday it has achieved notable financial success, securing its position as a leading conglomerate in Sri Lanka.

The Group recorded a net profit of Rs. 17.44 billion for the financial year 2023-24.

This performance is underscored by a robust final quarter (January-March 2024), during which the Group posted a revenue of Rs. 27.78 billion, contributing to a cumulative annual revenue of Rs. 122.33 billion, while gross profit recorded a 7.40% year-on-year growth to reach Rs. 54.40 billion, up from Rs. 50.65 billion in 2022/23.

Vallibel One’s profit before tax for the final quarter stood at Rs. 6.89 billion, culminating in an annual profit before tax of Rs. 26.55 billion. This marks a 6% growth compared to the Rs. 25.08 billion recorded the previous year. However, an income tax hike of 21% impacted overall profitability, resulting in a 2% decline in profit after tax, which amounted to Rs. 17.44 billion.

The Group’s performance was bolstered by significant contributions from its Finance sector, which saw revenue increases of 15%. Despite facing volatile interest rates, import bans, and evolving market dynamics, the Finance sector achieved its best performance to date. Conversely, the Lifestyle sector faced considerable challenges due to declining domestic consumer spending, a subdued construction industry, and the impact of dollar depreciation on exports. Yet, our lifestyle sector posted a profit after tax of Rs. 6.29 billion. The aluminium sector demonstrated commendable performance, driven by growth in the domestic market and an expansion in its export business during the year.

The tourism industry experienced a positive environment with a notable increase in tourist arrivals from December 2023. Consequently, our leisure sector recorded an increased performance for the year. Despite a significant decline in consumer spending and reduced demand across various retail channels, the Group’s consumer arm effectively managed its costs to achieve positive results. The packaging cluster faced a highly competitive market with excess supply, exacerbated by global supply chain disruptions and high raw material costs, resulting in subdued performance.

In terms of our financial position, Vallibel One reported a 12% growth in assets, reaching a total value of Rs. 346.59 billion. The Group’s liabilities also increased by 9%, amounting to Rs. 207.36 billion compared to the previous year. These results reflect Vallibel One’s resilience and strategic management in navigating a complex economic landscape.