Teejay Lanka achieves milestone US$ 250 mn in sales in FY22
Revenue up 56% to Rs.50nm
Records highest quarterly revenue since inception in 4Q
Completed Indian expansion adds 20 tonnes per day
Teejay Lanka PLC has reported a revenue milestone of Rs.50 billion at group level for FY22 achieving its first annual sales of a quarter worth a billion in US dollar terms on the exchange rates that prevailed during the year.
A strong fourth quarter during which revenue grew 38 percent to Rs 13.5 billion, the highest quarter revenue since the company’s inception, enabled Sri Lanka’s largest textile manufacturer to achieve 12-month sales growth of Rs.17.8 billion or 56 percent to end what was a challenging year for businesses in general, on a high note.
The group posted profit before tax of Rs.2.887 billion and net profit of Rs.2.517 billion for the year ending March 31, 2022, recording healthy growth of 11 percent and 18 percent respectively. Net profit for the fourth quarter was Rs 826.2 million, reflecting an improvement of 9 percent.
At company level, Teejay Lanka increased revenue by 40 percent to Rs 29.4 billion for the year, and reported pre-tax profit of Rs 2.6 billion and net profit of Rs 2.4 billion, achieving growth of 23 percent and 24 percent respectively.
Elaborating on the group’s performance, Teejay Lanka Chairman Ajit Gunewardene said the revenue increase was the result of increased demand from the region. The enhanced volumes were delivered with the increased capacity within the Group and the support of outsourced partners.
Gunewardene said, however, that margins had been impacted during the year because of the upsurges in the prices of cotton, oil, freight, dyes, chemicals, and auxiliaries.
“The increase in the costs of inputs has been the biggest challenge during the year,” he said, disclosing that enhancing efficiency within the Group and increasing prices to customers were the key strategies to counter the challenge.
Teejay Lanka CEO Pubudu De Silva said the US$ 26 million expansion project of Teejay India has been completed and is now adding 20 tonnes a day to group capacity to serve customers with on-time deliveries.
“This is the foundation for our US$ 300 million target and we now look forward to growth beyond that figure,” he said.
“Teejay India is extremely important to us as a strategic location because India is an apparel hub and enables us to be well-positioned to gain from the anticipated booms in the apparel industries of countries like Bangladesh and Indonesia. Additionally, the major suppliers of raw materials like yarn, dyes and chemicals are present in India,” he went on to explain.
De Silva added that Teejay Group has kicked off a few key strategic initiatives in order to enter the next phase of growth.
“Besides the Teejay India capacity expansion project, Teejay is moving towards an integrated ERP solution with the implementation SAP S4 HANA across the group, and remains confident of maintaining growth and delivering value to shareholders on a continuous basis,” he said.
Notably, the group has continued its strong balance sheet, to end the year reviewed with a cash balance of Rs 7.8 billion.