Renuka Foods announces share sub division following robust profits

Renuka Foods PLC has announced a sub division of its issued ordinary shares following a resolution passed by its Board of Directors on February 6, 2026, according to a stock filing.

The corporate action will see every one existing issued ordinary share sub-divided into two ordinary shares. This move is designed to double the number of shares in issue without altering the company’s stated capital. The sub-division applies to both the voting and non-voting share categories of the entity.

Consequently, the existing 180,005,317 issued ordinary voting shares will increase to 360,010,634 shares, while the 7,306,800 issued ordinary non-voting shares will increase to 14,613,600 shares. The company noted that under Article 11(2) of its Articles of Association, the Board is empowered to effect such a sub-division without the requirement for specific shareholder approval. The date of the sub-division will be notified to the Colombo Stock Exchange in due course.

The announcement comes amidst positive investor sentiment, with the company’s voting share closing at Rs. 72.40 last friday. This represents a gain of Rs. 1.60, or 2.26 percent, from the previous close of Rs. 70.80. The sub-division is expected to enhance the liquidity of the share by making it more accessible to retail investors, potentially increasing trading volumes on the Colombo Stock Exchange.

The Group operates as a holding company for subsidiaries engaged in two primary business segments: Agri Food Exports and Consumer Brands including Richlife and Mr.Pop. These key segments drove a significant improvement in financial performance, with the Group reporting a profit of Rs. 625 million for the quarter ended September 30, 2025, a sharp turnaround from the loss of Rs. 81 million recorded in the corresponding quarter of the previous year.

Group revenue for the same period rose by 77 percent to Rs. 4.97 billion. This growth was supported by a diversified revenue composition, with 57 percent of sales derived from exports and 43 percent from the local market. Total assets of the Group also saw an increase, reaching Rs. 13.56 billion as at September 30, 2025, up from Rs. 12.47 billion at the end of the previous financial year.