JAT sees bottom-line growth of 77% YOY in Q12024/25
View(s):JAT Holdings PLC, Sri Lanka’s market leader in wood coatings, paint brushes, and rollers, recently released its financials for Q1 of FY 2025, seeing strong growth in both its top- and bottom-line.
Revenues rose by 3 per cent to Rs. 2.2 billion compared with the same period in the previous year, driven by noticeable growth in the wood coatings and paint brushes categories. Profit After Tax (PAT) also demonstrated significant growth, expanding by 77 per cent YoY for the quarter under review to record Rs. 124 million, up from Rs. 70 million in the same quarter of the previous year, the company said in a media release.
“These achievements were driven by steady and growing sales, supported by efficiencies arising from JAT’s acrylic binder and alkyd resin plants coming online earlier in 2024. The group expects these efficiencies to further support growth and profitability in the coming quarters, with it now producing binders for wood coatings and wall paint emulsions inhouse. This, together with further strengthening of its R&D, Marketing and Bangladesh operations, is expected to have significant positive outcomes for the group’s balance sheet and financial performance indicators through FY 2024/25,” the release said.
The quarter under review also witnessed certain significant milestones with regard to JAT’s strategy to expand market share and drive overseas expansion. The group made its inaugural shipment of wood coatings to Australia, while it also opened showrooms for SEAFORM – the German brand of luxury vanities and kitchens it represents – in both Australia and Bangladesh. During the quarter under review JAT was also able to record 41 per cent growth in project sales, 15 per cent growth in wood coatings including Sayerlack – its flagship wood coating product, and 47 per cent growth in the paint brushes category.
Commenting on the group’s performance, CEO, Nishal Ferdinando said, “In a quarter where we experienced adverse weather conditions across Sri Lanka, we are proud to have been able to continue to achieve and drive growth in sales and revenue, leveraging our strong brand equity and operational efficiency. It’s also important to note that, while nominal export revenues declined marginally by 6 per cent, on account of exchange rate volatility in the Bangladeshi Taka, our export volumes have remained steady.”
JAT Holdings PLC also recorded a 5 per cent growth in gross profits, though growth was subdued by unfavourable exchange rate volatility in the Bangladeshi Taka. However, operating profits contracted by 27 per cent due to rising overheads as the group expands its operations in Bangladesh.
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