Business News Update: Teejay Lanka PLC has reported profit before tax of Rs 2.364 billion at Group level for the nine months ending December 31, 2019, an improvement of 56% over the corresponding period of the previous year.
Sales for the period grew by 15% to Rs 26.3 billion the Company said, with revenue for the 3rd quarter alone up by 5% to Rs 8.9 billion.
Group profit before tax for the three months ending December 31– Teejay’s 9th consecutive quarter of revenue and profit growth – increased by 31% to Rs 846 million, while net profit for the quarter also improved by 31% to Rs 719 million. On the basis of these results, Teejay Lanka PLC has proposed a dividend of Rs 1.30 to shareholders in respect of the third quarter of 2019-20.
Attributing the Group’s performance to “Continuous focus on maintaining a strong order book with the commencement of the Operational Excellence journey during the year,” Teejay Lanka Chairman Bill Lam said overall growth in gross profit was primarily due to a healthier mix, continued stabilisation of cotton prices and improved capacity compared to the previous year, generated through internal efficiencies.
Teejay Lanka CEO Pubudu de Silva, whose appointment became effective in the third quarter of the year said that “Long term strategies adopted by the Group and economies of scale from expanding capacity have positively impacted performance during the quarter. He added that “As we celebrate 20 years in operation this year, the Group will continue to focus on creating sustainable products, innovations and modifications to improve the product portfolio for its customers.”
Teejay Lanka was adjudged the Best Textile Exporter in Sri Lanka at the Presidential Export Awards presented by the Export Development Board (EDB) in 2019, moved up three places in the Business Today Top 30 companies ranking that year and was named among the 100 Most Respected Companies in Sri Lanka by LMD.
With manufacturing operations in Sri Lanka and India, Teejay is one of the region’s largest textile manufacturers, and supplies fabric to some of the best international brands across the world. Teejay Lanka PLC is a public quoted company with 39% public ownership. The company is backed by Sri Lanka’s largest apparel exporter, Brandix Lanka which has a 33% stake and Pacific Textiles of Hong Kong which owns 28% of the company.
An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay has been listed on the Colombo Stock Exchange (CSE) since 2011 and was included in the S&P Top 20 Index in Sri Lanka. The Company has also been named among the Forbes ‘200 Best under a Billion in Asia’ and been recognised as the ‘International Textile Firm of the Year’ and the ‘International Dyer and Finisher’ by World Textile Institute, London.