JAT Holdings reports robust 2Q with Bangladeshi manufacturing facility going live

Sri Lanka’s market leader in wood coatings and multinational conglomerate JAT Holdings PLC has posted exceptional financial performance for the second quarter of FY 2022/23. 

During the quarter, the group also achieved a major milestone, delivering on its key IPO promise, by inaugurating its own end-to-end state-of-the-art manufacturing facility in Bangladesh. 

Simultaneously, JAT Holdings PLC also recorded its highest ever revenue for a 2Q in history, doubling its profit before tax, compared with the corresponding period in the year prior. 

Accordingly, JAT Holdings PLC noted a YTD revenue growth of 40 percent during the period, concurrently managing to increase gross profit margins amidst the most challenging economic environment in its history, clearly demonstrating the group’s strategic and fiscal prowess. 

The group reported earnings of 85 cents or Rs.434.9 million for 2Q23, compared to earnings of 49 cents or Rs.240 million reported for the corresponding period a year ago.

The revenue for the period rose 42 percent year-on-year to Rs.2.45 billion. 

The group’s strategy of purchasing raw materials in bulk and maintaining adequate stocks for at least six months at all times, allowed the enterprise to benefit from economies of scale, while prudent and effective waste management efforts helped to improve productivity and efficiency. 

As a result, the operating profit also recorded a healthy growth of 111 percent during the period under review, supported by cost management efforts, which helped manage input cost inflation and foreign exchange volatility. 
Commenting on the business momentum CEO Nishal Ferdinando said, “Supported by our new manufacturing facility in Bangladesh and expert manoeuvring in the Sri Lankan market amidst the toughest business environment we have endured to date, we are pleased to present rock solid financial performance to our investors and exceptional value to all other stakeholders.”

Discussing the group’s strategy and future plans, Founder and Managing Director Aelian Gunawardene added, “Just over a year on from our IPO, I’m pleased to communicate to investors that we have fulfilled the pledges made in our prospectus. We have completed and commissioned our ultramodern end-to-end manufacturing and warehousing facility in Bangladesh, located strategically in close proximity to seaports and our key markets in that country, Dhaka and Chittagong. Our Research and Development Centre is now operational, staffed by teams of experts who will help us to engineer better, cleaner and more efficient products in the future.”