Key Highlights
- Teejay Group reported revenue of LKR 60.04 billion for the financial year ended March 31, 2026, reflecting a 10% year-on-year decline amid challenging global market conditions.
- The decline was primarily driven by continued softness in global textile demand, reciprocal tariffs imposed by the United States, intensified pricing pressures, and lower order volumes across key markets.
Profitability Impacted by Market Challenges
- Group Gross Profit declined 36% year-on-year to LKR 5.02 billion.
- The reduction was attributed to lower production volumes, underutilization of manufacturing capacity, sustained pricing pressures, and an unfavorable product mix.
- These factors collectively weighed on margins during a difficult operating environment for the textile industry.
Earnings Under Pressure
- Profit After Tax (PAT) declined 98% year-on-year to LKR 54.7 million.
- The decrease was driven by higher rupee-denominated operating costs, non-recurring expenses, provisions for doubtful debts, and restructuring costs associated with right-sizing initiatives.
Chairman Highlights Strategic Response
- Chairman Ajit Gunewardene stated that persistent global demand weakness and pricing pressures impacted the Group’s performance during the year.
- Despite these challenges, the Group maintained its focus on operational efficiency, cost discipline, and strengthening financial resilience.
- Management believes these measures position Teejay to navigate ongoing market uncertainty while supporting long-term shareholder value creation.
Strong Balance Sheet Maintained
- As at March 31, 2026, cash and cash equivalents stood at LKR 8.3 billion.
- The Group’s net asset base increased 3% year-on-year to LKR 32.4 billion, reflecting continued balance sheet strength despite earnings pressures.
- Disciplined working capital management and a strong liquidity position continue to support operational stability.
Shareholder Value Preserved
- Net Asset Value (NAV) per share improved from LKR 43.70 to LKR 44.91 year-on-year.
- The increase highlights the Group’s commitment to preserving shareholder value and maintaining financial strength during a period of industry-wide headwinds.
Outlook
- While global textile demand remains subdued, Teejay Group is focused on enhancing operational efficiencies, managing costs, and maintaining financial flexibility.
- The Group’s strong liquidity position and resilient balance sheet provide a solid foundation to capitalize on future market recovery opportunities.
