JAT Holdings PLC reported a robust 67% growth in Profit After Tax (PAT) for the first half of FY 2024/25, reaching Rs. 512 million by September 30, 2024. This growth comes amidst challenging conditions in Bangladesh and the Maldives, demonstrating the company’s resilience and commitment to delivering value to stakeholders.
The Group’s Sri Lanka operations saw an 8% revenue increase, totaling Rs. 3,287 million. This improvement, alongside a 2% increase in gross profit margins, is attributed to efficiencies gained from JAT’s Acrylic Binder and Alkyd Resin manufacturing facilities. Additionally, a strategic reduction of 10% in selling and distribution expenses helped JAT optimize its cost structure, following increased marketing investments in the prior year.
Despite JAT’s strong performance in Sri Lanka, operations in Bangladesh faced difficulties due to macroeconomic instability, sociopolitical factors, and recent severe flooding. In response, JAT launched CoatEx, an affordable wood coating product tailored for Bangladesh’s budget-conscious market, positioning JAT’s local subsidiary ACL with a competitive advantage over import-dependent firms impacted by tight foreign exchange restrictions. However, total revenue from Bangladesh dropped 33% to Rs. 1,148 million, contributing to a 7% overall decline in the Group’s revenue, totaling Rs. 4,536 million for the period. Profit Before Tax (PBT) also recorded a slight 3% dip, reaching Rs. 408 million due to increased financing costs.
In other international markets, revenue decreased by 9%, affected primarily by foreign exchange limitations in the Maldives. The Group’s gross profit fell 2% to Rs. 1,393 million, while administrative expenses rose 5% to Rs. 458 million due to increased salaries and wages. Nevertheless, JAT generated Rs. 521 million from operating activities, slightly above last year’s figures, showcasing operational stability.
CEO Nishal Ferdinando expressed optimism for the future, anticipating improved market conditions in Bangladesh over the coming months. Meanwhile, JAT’s wood coatings segment continues to perform well, bolstered by efficiency gains from in-house manufacturing. New pricing strategies for JAT’s emulsions are also being introduced to enhance competitiveness.
Managing Director Aelian Gunawardene emphasized JAT’s strategic focus on cost-efficient, sustainable operations. The recent establishment of Alkyd Resin and Acrylic Binder facilities has strengthened supply chain stability, reinforcing JAT’s market position. With upcoming projects like the JAT lifestyle studio in Colombo and SEAFORM Perth Australia showroom, the company is set to expand its influence in lifestyle solutions.
In addition, JAT’s recent entry into the Australian market with its first shipment of wood coatings and ongoing NVQ training programs in wood and wall coatings showcase the company’s dedication to community empowerment, skill development, and long-term customer loyalty.