Sri Lanka’s only multinational textile producer Teejay Lanka PLC has ended 2019-20 on an encouragingly strong note,
reported profit before tax of Rs 2.9 billion at Group level for the 12 months ending 31st March 2020, reflecting impressive growth of 29% over the preceding year, a remarkable achievement considering that pre-tax profit for the final quarter was down 24% over the corresponding three months of 2019-20, to Rs 542.1 million.
The Group posted net profit of Rs 2.4 billion for the full year, an improvement of 28%, after paying income tax of Rs 528.7 million, which was up 33% over that of the previous year. Net profit for the quarter ending 31st March 2020, at Rs 421.7 million, reflected a decline of 30%.
Group revenue increased by a consistent 5% to Rs 33.3 billion for the 12 months reviewed, but was down by 21% to Rs 6.9 billion for the fourth quarter of 2019-20.
Teejay Lanka Chairman Bill Lam commented that the unexpected decline in numbers in the fourth quarter was unfortunate as the Teejay Group was well in line to achieve its 10th consecutive quarter of growth in revenue and net profit had it not faced the unforeseen circumstance of the pandemic. “However, the Group had a very successful financial year achieving remarkable milestones, which included its highest revenue, highest gross profit and highest net profit for a financial year,” he said.
In a note to shareholders, Lam also said the Group had donated fabric with its existing capabilities for the production of 2 million face masks to protect medical staff and armed forces in Sri Lanka that are engaged in the battle against the spread of COVID-19.
Looking ahead, he said the pandemic will challenge the business in the coming months as most of the brands Teejay produces fabric for have had to shut their retail stores in the US and EU. Adapting to the changing environments, Teejay has ventured into a new endeavour of producing Personal Protection Equipment (PPE) to cater to international markets to supply the unprecedented current demand for these products.
“As the manufacture of fabric is a mechanised process and the Teejay facilities extend to nearly 1.1 million square feet, the Group’s three production facilities are capable of manufacturing with their full work force amidst a COVID-19 environment”, Lam said.
Teejay Lanka CEO Pubudu de Silva added: “With the team’s ability to innovate and create products, the Group’s new venture into the PPE market exploiting the years of experience in creating sophisticated fabric and its strength in the South Asian region together with its strong balance
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reported profit before tax of Rs 2.9 billion at Group level for the 12 months ending 31st March 2020, reflecting impressive growth of 29% over the preceding year, a remarkable achievement considering that pre-tax profit for the final quarter was down 24% over the corresponding three months of 2019-20, to Rs 542.1 million.
The Group posted net profit of Rs 2.4 billion for the full year, an improvement of 28%, after paying income tax of Rs 528.7 million, which was up 33% over that of the previous year. Net profit for the quarter ending 31st March 2020, at Rs 421.7 million, reflected a decline of 30%.
Group revenue increased by a consistent 5% to Rs 33.3 billion for the 12 months reviewed, but was down by 21% to Rs 6.9 billion for the fourth quarter of 2019-20.
Teejay Lanka Chairman Bill Lam commented that the unexpected decline in numbers in the fourth quarter was unfortunate as the Teejay Group was well in line to achieve its 10th consecutive quarter of growth in revenue and net profit had it not faced the unforeseen circumstance of the pandemic. “However, the Group had a very successful financial year achieving remarkable milestones, which included its highest revenue, highest gross profit and highest net profit for a financial year,” he said.
In a note to shareholders, Lam also said the Group had donated fabric with its existing capabilities for the production of 2 million face masks to protect medical staff and armed forces in Sri Lanka that are engaged in the battle against the spread of COVID-19.
Looking ahead, he said the pandemic will challenge the business in the coming months as most of the brands Teejay produces fabric for have had to shut their retail stores in the US and EU. Adapting to the changing environments, Teejay has ventured into a new endeavour of producing Personal Protection Equipment (PPE) to cater to international markets to supply the unprecedented current demand for these products.
“As the manufacture of fabric is a mechanised process and the Teejay facilities extend to nearly 1.1 million square feet, the Group’s three production facilities are capable of manufacturing with their full work force amidst a COVID-19 environment”, Lam said.
Teejay Lanka CEO Pubudu de Silva added: “With the team’s ability to innovate and create products, the Group’s new venture into the PPE market exploiting the years of experience in creating sophisticated fabric and its strength in the South Asian region together with its strong balance
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