JAT Holdings Posts 36% Revenue Growth in First Half, Profit After Tax Up 27%

JAT Holdings PLC recorded Group revenue of LKR 7.01 billion, up 36% year-on-year, supported by growth across local businesses and a higher contribution from international operations.
Local revenue rose 14% to LKR 4.56 billion, primarily supported by the emulsion category.
Foreign operations revenue increased 115% to LKR 2.45 billion, reflecting improving business conditions in Bangladesh and an expanding international presence.
Gross profit margin across foreign markets improved from 24% to 26%.
Gross profit rose 36% to LKR 2.46 billion, maintaining a 35% margin despite higher raw material import costs and rising fuel prices.
Operating profit increased 15% to LKR 653 million, while operating margin moderated from 11% to 9%.
The margin dip reflects higher administrative, selling and distribution expenses, including consolidation of the Mirotone operation, Volt software amortisation, transportation and expanded storage capacity.
Favourable exchange rate movements helped reduce finance costs.
Profit before tax grew 27% to LKR 602 million, and profit after tax rose 27% to LKR 504 million.

Management Commentary

CEO Nishal Ferdinando said the first-half performance reflects the increasing breadth of the Group’s growth, with stronger contributions from both local and international operations.
He noted that maintaining gross margin amid higher input costs reinforces the value of investments in manufacturing efficiency and backward vertical integration.
The focus for the second half is on translating the broader operating base into sustained profitability and long-term growth.
Managing Director Aelian Gunawardene said progress across Bangladesh, New Zealand and Australia reflects the growing scale of JAT’s international platform.
He added that the long-term ambition is to build a stronger Sri Lankan multinational able to compete sustainably across regional and international markets.

Local Business Performance

Wood coatings: Market share expanded to 57.1%, with 2% revenue growth and a 1.6% improvement in net gross profit margin, aided by the second phase of the Acrylic Binder Plant upgrade.
The loyalty customer base grew 7% to exceed 191,000, contributing around 78% to 80% of sales.
Decorative paints: Revenue grew 107%, driven by brands including White by JAT, Hydro Plus and Wallz, with segment gross margin improving by 1.4%.
JAT HeatBlock20 was introduced to the industrial market.
Brushes and Rollers: Retained market leadership with a 31% share and 11% revenue growth.
Furnishing: Grew 16%, supported by a confirmed project pipeline of LKR 561 million.

Manufacturing Integration

The upgraded Acrylic Binder Plant in Sri Lanka and the start of alkyd resin exports from Bangladesh to Sri Lanka strengthened backward vertical integration.
This supports greater manufacturing control and a more resilient regional supply platform.

Volt Charge

Invoiced 2,000 L2 chargers to John Keells CG Auto for BYD vehicles.
Completed engineering of a 200 kW commercial vehicle charger.
Volt app user base rose to 25,000 active users.
Revenue declined 5% due to the timing of revenue recognition.
Commenced a pilot project for electric two- and three-wheeler charging, with the first charger installed in Kottawa.

International Operations

Bangladesh: Industrial sales grew 26%, retail sales 42% and CoatEX revenue 151%.
Mirotone New Zealand: Month-on-month sales rose 12% in August and 9% in September, following slower movement in Q1.
The business reported a first-half loss of NZD 99,000 amid challenging market conditions.
Initial sales to Fiji were recorded, an early step in expanding export reach from New Zealand.
Mirotone Australia: Local facility and colour-matching infrastructure are now fully established.
Product R&D and market testing progressed, with initial shipments supporting product familiarisation and commercial discussions.

Corporate Profile

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