JAT records 43% Q4 PAT growth over Q4 2023, 53% YOY revenue increase in Bangladesh

Mr Aelian Gunawardene

Mr. Nishal Ferdinando 

JAT Holdings PLC, a new regional conglomerate and Sri Lanka’s market leader in wood coatings and brushes, recently released its financials for the fiscal year ended 31^st March 2024, with a profitability of 43 per cent over the 4^th quarter of the previous year, to Rs. 447 million.

Year-on-year (YoY) turnover increased by 14 per cent to Rs 11.5 billion to record the highest turnover ever achieved by JAT Holdings PLC. Overall the export sector growth also rose by a healthy 53 per cent, while local revenues grew by 14 per cent, the company said in a media release.

Driven by its expansion and operations in Bangladesh, which are progressing at a brisk pace, dollar revenues increased to 33 per cent of total revenue for FY 2023/24, compared with 25 per cent in FY 2022/23, contributing to Rs. 3,608 billion of total revenues in the year under review.

However, Profit After Tax (PAT) for FY 2023/24 dipped by 21 per cent, driven by a conscious investment into international expansion and into consolidating JAT’s market-leading position through increased brand building and promotional activities. These are intended to consolidate market share and brand equity, whilst furthering JAT’s overseas expansion efforts across Africa, Australia and South Asia.

Commenting on the group’s financial performance, Nishal Ferdinando – CEO at JAT Holdings PLC said, “Fiscal year 2023/24 was a year of contrasts with the 1^st half inheriting many of the challenges witnessed in 2022. However, thanks to prudent policy action and necessary regulatory intervention, the Sri Lankan economy made a remarkable turnaround, delivering a sound recovery in the 2^nd half, particularly in the final quarter. Accordingly, our focus too has shifted from short-term subsistence towards a broader long-term strategy, which includes a focus on investing into consolidating our brand equity as the No.1 brand in the wood coating and brushes space. Meanwhile, our growth has been further sustained and boosted by our overseas operations, which are now bearing fruit. Therefore, we are now suitably positioned to capitalise on the emergent economic recovery in Sri Lanka and the favourable economic conditions in overseas markets.”

Revenues from JAT’s Bangladesh operations increased by 50 per cent, despite the Sri Lanka Rupee appreciating against the Bangladeshi Taka, compared to the previous year. Accordingly, in terms of the functional currency, JAT Bangladesh has recorded an impressive growth of 110 per cent during the year under review. Meanwhile, JAT’s new Alkyd Resin Plant and Binder Plant, in Bangladesh and Sri Lanka, respectively, came online in February and March of 2024. This much-awaited development is slated to drive a further surge in revenues during FY 2024/25, the release said.

Discussing the group’s future outlook, Managing Director and Founder of JAT Holdings PLC, Aelian Gunawardene said, “Having invested heavily into overseas expansion and reinforcing our market leading position, whilst continuing to deliver exceptional value to stakeholders, we are now poised to deliver sustained long-term growth. Our positioning ensures we are ready to take advantage of Sri Lanka’s economic recovery, whilst also capitalising on emerging opportunities in our overseas markets. Our focus now is in driving further rapid overseas expansion, particularly in Bangladesh, but also across East Africa, the ASEAN region, and Australia, to support our growth aspirations both in the medium- and long-term.”

JAT Holdings PLC is the market leader in wood coatings and brushes in Sri Lanka, with a dominant presence in the paints and luxury home and office furnishings segments. Through its Alkyd Resin Plant in Bangladesh, and its Binder Plant in Sri Lanka, JAT benefits from backward vertical integration and enhanced cost efficiencies.