Cargills reports strong 3Q performance

The Cargills group reported a strong financial performance for the third quarter of the 2025/26 financial year, demonstrating resilience, despite the severe weather disruptions experienced across Sri Lanka during the period.

The group revenue for the quarter reached Rs.70.8 billion, reflecting a 14.5 percent year-on-year (YoY) increase, while the EBITDA grew 29 percent to Rs.7.3 billion. Profit after tax (PAT) rose 79.3 percent to Rs.2.9 billion, bringing the cumulative PAT for the first nine months of the year to Rs.7.9 billion, a 53.8 percent increase YoY. 

The performance was supported by growth across the core business sectors, improved margins, disciplined cost management and lower finance costs, alongside a stronger cash flow and working capital management. The operations during the quarter were affected by the widespread impact of Cyclone Ditwah, which caused temporary closures of retail outlets, restaurants and manufacturing facilities as well as supply-chain disruptions. All affected locations resumed operations by early January 2026.

Despite these challenges, the retail, FMCG and restaurants segments recorded continued growth, supported by resilient consumer demand, distribution strength of the company and ongoing operational improvements. 

The restaurants business further strengthened its focus on the KFC franchise, discontinuing the TGI Fridays franchise arrangement, effective January 31, 2026, a decision not expected to materially impact the segment performance.

Cargills also contributed Rs.100 million to the government’s National Disaster Relief Fund and provided approximately Rs.45 million worth of essential food and dry rations to the affected communities. 

The group purchases over Rs.20 billion in agricultural produce and fresh milk from the smallholder farmers across Sri Lanka every year, directing substantial income to the rural economy. 

Cargills is also one of the leading taxpayers and collectors in the country, contributing over Rs.46 billion annually in taxes to the national coffers.

Looking ahead, the company expects near-term consumer spending to moderate slightly, due to the cyclone-related economic effects, while the macroeconomic stability and long-term growth prospects remain intact. 

Cargills is expected to continue pursuing selective investments to grow its business, reflecting its confidence in the Sri Lankan economy.