Teejay Lanka PLC, Sri Lanka’s pioneering multinational textile manufacturer, has announced a remarkable turnaround in its financial performance for the quarter ending June 30, 2024 (1Q25).
The company reported a profit before tax of Rs. 273.7 million, a significant recovery from the Rs. 701 million loss recorded during the same period last year. Revenue for the quarter rose to Rs. 15.4 billion, reflecting a 10% increase compared to the previous year. Gross profit saw a dramatic 357% growth, reaching Rs. 1.3 billion.
Teejay Lanka also achieved an operating profit of Rs. 382 million, reversing the operating loss of Rs. 582 million from the first quarter of 2023-24. The Group posted a net profit of Rs. 158.3 million for the quarter, compared to a net loss of Rs. 853 million in the corresponding period of the previous year.
The company ended the quarter with a robust cash and cash equivalents balance of Rs. 8.9 billion. Chairman Ajit Gunewardene highlighted the Group’s commitment to an ESG framework and digitalization, emphasizing its focus on new product lines and expanding its synthetic footprint.
CEO Pubudu De Silva noted a positive shift in orders towards the Asian region and increased volumes resulting from offloading from Bangladesh. The Group is navigating market changes and implementing long-term strategies to sustain its growth trajectory and aims to reach US$ 300 million in revenue.
Teejay Lanka operates manufacturing facilities in Sri Lanka and India, along with a state-of-the-art printing facility in Sri Lanka. The company is publicly listed, with 40% public ownership. It is supported by Sri Lanka’s largest apparel exporter, Brandix Lanka, which holds a 32% stake, and Pacific Textiles of Hong Kong, a key shareholder of Toray Industries Inc., which owns 27% of Teejay Lanka.