Teejay Group 3Q profit up 234% to Rs. 1.9 bn

Teejay Group, Sri Lanka’s first multinational textile manufacturer, closed the third quarter of the financial year 2024/2025 with a year-to-date Profit after Tax of Rs. 1.9 billion, a 234 percent improvement compared to the figures reported during the same period last year.

The increase in profit is primarily due to the timely execution of several strategic initiatives and efficient cost reduction strategies, coupled with Teejay’s multinational presence which enabled it with the flexibility to capitalise on strategic locations, the company said in a commentary that followed the release of the interim financial statements. The Group revenue has soared to an impressive Rs. 49.8 billion, recording a 10 percent increase compared to the period ending on 31st December of the previous year.  The company attributed the increase in revenue to several factors such as improvements in the Group’s sales mix and the notable increase in demand despite the challenges posed by the appreciation of the Rupee. Furthermore, Teejay shared that the Group is witnessing a significant shift of orders to the Asian region due to the China One Plus strategy.  “This shift presents us with opportunities for increased volume being directed to Sri Lanka and India as a result of offloading from Bangladesh,” it said. Gross Profit of the Group was Rs. 5.4 billion for the period ending on 31st December representing a 57 percent improvement in comparison to the same period of the previous year.  Additionally, the sustained stability in yarn prices, along with the strategic product mix, has contributed to the growth of Teejay’s top line and overall profitability. The distribution expenses and administration expenses have increased by 10 percent and 20 percent respectively compared to the same period in last year, primarily due to the significant growth in volume. Furthermore, the Group closed with a strong balance sheet with a cash balance of Rs. 8.4 billion. With a steady performance maintained throughout the period the net assets base at the close of the quarter stood at Rs. 30.9 billion with a value of Rs. 42.78 net assets per share.