Sri Lankan multinational conglomerate and wood coatings market leader, JAT Holdings PLC recorded its best financial year ever, doubling its profit after tax (PAT) in the 2021/22 financial year. Demonstrating resilient performance amid Sri Lanka’s toughest economic environment ever, the company’s revenue grew by 66% to LKR 8.897 billion from LKR 5.36 billion the previous year.
Meanwhile, gross profit increased by 58% to LKR 2.603 billion from LKR 1.644 billion in the 2020/21 financial year, while operating profit increased by 73%. Most notably, JAT Holdings PLC saw its profit after tax increase by 102% to LKR 1.211 billion from LKR 600 million the previous year. The company also saw its export revenue increase during the year to account for 23% of group turnover, up from 12% the previous year, as the business pivots to a more export-oriented business. ‘export.
A press release from JAT Holdings said: “During the year, the company was able to maintain gross profit margins at 29%, while operating profit remained limited at 13% due to inflation. input costs and currency volatility during the period under review.However, the Company was able to pay two separate interim dividends to investors worth LKR 0.32 and LKR 0.25 per An analysis of key sector growth further showed that wood coatings increased by 61%, decorative products (which includes WHITE by JAT) increased by 77% and brushes increased by 43%, during the period considered, reflecting growth in both volume and value.
“Discussing the company’s financial performance, Founder and Managing Director, Aelian Gunawardene said, “We are very pleased to report that we have delivered on our promise and commitment to our stakeholders, which we made during our Initial Public Offering. We made, as promised, an after-tax profit of Rs 1.2 billion. Moreover, we have taken this step in the midst of the most severe economic crisis that Sri Lanka has experienced. Therefore, it should be testament to and reassure our investors and other stakeholders, that JAT Holdings PLC is capable of delivering exceptional value, even in the face of adversity, and is supported by a business strategy suited to the current environment, and will continue to remain resilient for the foreseeable future and beyond.
“JAT Holdings PLC will address current challenges and turn them, where possible, into opportunities, and implement a forward-looking business strategy to consolidate its position and remain resilient in the face of Sri Lanka’s many evolving crises.
“Commenting on the business strategy, CEO Nishal Ferdinando said, “A major part of our resilience-driven business strategy will be to move into export-oriented and international businesses with a view to growing revenue as much as possible. export in the short and medium term. . This will provide the Company with stability and the ability to outperform. In fact, in the 2021/22 financial year, export revenues increased to represent 23% of group revenues, which represents a significant increase compared to the previous year, when this figure was only by 12%.
“To support this strategy, JAT Holdings PLC has already implemented various initiatives in the Bangladesh market, such as establishing a new state-of-the-art R&D facility and commissioning a manufacturing plant. , as well as expansion into the retail market. Separately, the company is also working to expand its operations in Africa, with discussions underway to commission a factory in the country. Together, these new facilities will further solidify the company’s position in the regional market, while contributing to revenue and margin growth.