Sri Lanka’s multinational textile manufacturer Teejay Lanka records 25 percent increase in sales during six months in 2018 - Opportunity Sri Lanka
Sri Lanka’s multinational textile manufacturer Teejay Lanka records 25 percent increase in sales during six months in 2018

Sri Lanka’s multinational textile manufacturer Teejay Lanka records 25 percent increase in sales during six months in 2018

Sri Lanka’s only multinational textile manufacturer, Teejay Lanka PLC has reportedly recorded sales of Rs. 14.4 billion and profit after tax of Rs. 704.8 million at Group level for the six months ending 30th September 2018, which is a growth of 25 percent and 20 percent respectively for the period.
Group profit before tax has recorded an improvement of 15 percent to Rs. 848.6 million, the Weft knit fabric specialist with manufacturing operations in Sri Lanka and India said in a filing with the Colombo Stock Exchange (CSE).
The local media report quoting the Company has stated that the revenue in the second quarter of 2018-19 was up 25 percent to Rs 7.6 billion, profit before tax grew 11 percent to Rs 500.2 million and net profit increased by 15 percent to Rs 425.5 million over the corresponding three months of the previous year.
Teejay Lanka Chairman, Bill Lam has said this was the fourth consecutive quarter of revenue and net profit growth for the Company in the face of stiff challenges, and was made possible by expanded capacity in the Group and a strong order book arising from the GSP facilities that it enjoys.
He has disclosed that although margins were impacted by raw material and utility cost increases in the second quarter, Teejay had been able to improve its gross margin to 11.3 percent from 10.2 percent in the corresponding quarter as a result of better loading and an improved mix, with its USA and EU business units increasing sales volumes.
Consequently, gross profit for the Group was at Rs 859 million for the second quarter and Rs 1.5 billion for the six months, reflected growth of 15 percent YoY after absorbing higher utility and raw material costs and the depreciation of the Rupee, Lam has reportedly said.
One of the region’s largest textile manufacturers, Teejay supplies fabric to some of the best international brands across the world. Teejay Lanka PLC is a public quoted company with 39 percent public ownership. The company is backed by Sri Lanka’s largest apparel exporter, Brandix Lanka which has a 33 per cent stake and Pacific Textiles of Hong Kong which owns 28 per cent of the company.

OSL take:

The growth in sales recorded by Sri Lanka’s multinational textile manufacturer shows the business potential in Sri Lanka’s apparel manufacturing and exports sector. Sri Lanka enjoys the GSP Plus trade concession of the EU and the US GSP facility which provide added incentives to local manufacturers and exporters. Teejay’s profits would be an encouraging sign for foreign apparel companies to explore business opportunities in Sri Lanka.

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Article Code : VBS/AT/20181105/Z_4

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