Cargills (Ceylon) PLC, one of Sri Lanka’s leading consumer goods conglomerates, has reported a robust financial performance for the fiscal year ending 31 March 2025, driven by volume-led growth across its core business verticals—Retail, FMCG, and Restaurants.
Group revenue rose by 8.2% year-on-year, while Profit After Tax (PAT) jumped by 22.5%, signaling strong consumer demand and continued focus on affordability, operational efficiency, and innovation.
For the fourth quarter alone, Cargills reported revenue of Rs. 59.5 billion, up 9.4% from the same period last year. Operating profit grew 14.9%, while quarterly PAT stood at Rs. 2.1 billion, marking a 7.8% year-on-year increase.
Retail Expands with Footfall Growth and Store Openings
The Retail division, led by the flagship Cargills Food City chain, saw notable increases in customer traffic and average basket size—even amid deflationary trends. Executives credited targeted promotions and affordable pricing strategies for the improved performance. During the quarter, the company opened eight new outlets, bringing its total store count to 545.
FMCG Performance Bolstered by Tax Reforms and Demand Surge
In the FMCG segment, Cargills recorded volume growth across all key categories. The government’s removal of VAT on UHT milk and yoghurt from April 2025 enabled the company to pass on price benefits to consumers, further boosting demand. The segment includes household brands such as Kotmale, Magic, Kist, Ride Energy Drink, and Goldi.
KFC Drives Restaurant Segment Growth
The Restaurants segment, anchored by the KFC brand, maintained double-digit growth thanks to new store additions and stable same-store sales. Cargills now operates 78 KFC outlets across Sri Lanka.
Supporting Rural Economies and Looking Ahead
Cargills continues to be a key contributor to the Sri Lankan economy, generating over Rs. 3.5 billion in monthly tax revenue and nearly Rs. 2 billion in direct payments to rural farmers. The company remains the country’s largest buyer of fresh produce and milk, working with thousands of smallholder farmers across the island.
Looking ahead, the company remains optimistic, citing macroeconomic stability, improved consumer sentiment, and ongoing policy reforms as supportive of future growth.
“This performance reflects the strength and resilience of the Cargills business model, built over decades of commitment to the Sri Lankan consumer,” said Ranjit Page, Deputy Chairman and CEO. “We remain focused on delivering long-term value through innovation, operational excellence, and community investment.”