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JAT Holdings posts best ever financial year on record and delivers IPO promise

  • 21 Jun 2022
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Sri Lankan multinational conglomerate and market leader in wood coatings, JAT Holdings PLC, has posted its best ever financial year on record, doubling its Profit After Tax (PAT) during FY2021/22.

Demonstrating resilient performance amidst the most challenging economic environment ever experienced in Sri Lanka, the Company’s Revenues rose by 66% percent to LKR 8.897 billion, from LKR 5.36 billion in the previous year.

Meanwhile, Gross Profits grew 58% to LKR 2.603 billion, compared with LKR 1.644 billion in FY2020/21, while Operating Profit rose by 73%.

Most notably, JAT Holdings PLC witnessed its Profit After Tax expanding by an admirable102% to LKR 1.211 billion, up from LKR 600 million in the previous year. The company also witnessed export revenues grow during the year to account for 23% of Group Revenue, from 12% in the year prior, as the business pivots towards more export-oriented activity.

During the year, the Company was able to maintain its Gross Profit margins at 29%, while Operating Profit remained constrained at 13% due to input cost inflation and foreign exchange volatility during the period under review.

However, the Company was able to make two separate interim dividend pay-outs to investors worth LKR 0.32 and LKR 0.25 per share, during the year. An analysis of key sectoral growth further demonstrated that Wood Coatings grew by 61%, Decoratives (which includes WHITE by JAT) grew by 77% and Brushes grew by 43%, during the period under review, reflecting growth in both volume and value.   

Discussing the financial performance of the enterprise, Founder and Managing Director, Aelian Gunawardene said, “We’re very pleased to state that we’ve lived up to our promise and commitment to our stakeholders, which we made during our IPO. We have delivered, as promised, a profit after tax of 1.2 billion rupees. Furthermore, we have achieved this milestone amidst the most serious economic crisis that Sri Lanka has experienced.

Commenting on the business strategy, CEO Nishal Ferdinando said, “A major component of our resilience focused business strategy will be to pivot towards export-oriented and international business with a view to expanding export revenues as much as possible in the near to medium term.

To support this strategy, JAT Holdings PLC has already implemented various initiatives in the Bangladesh market such as the establishment of a new state-of-the-art R&D facility and the commissioning of a manufacturing plant, along with expansion into the retail market. Furthermore, the company is also working to develop its operations in Africa, with discussions underway to commission a plant in the country.

Together, these new facilities will further consolidate the company’s position in the regional market, while contributing towards revenue and margin growth.

In terms of the Company’s project vertical, JAT has revealed that this division remains unaffected by import restrictions since the Company has adequate stocks to ensure completion. Furthermore, projects involving BOI companies are not subject to import controls, and are pegged to the dollar. As such, these operations will continue as normal.

Since its founding in 1993, JAT Holdings has established itself as a market leader in Sri Lanka for wood coatings and as one of the country’s most promising conglomerates.

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