Teejay Lanka PLC has embarked on the fiscal year 2023-24 with resilience, securing a robust balance sheet even amidst a challenging first quarter. Despite a significant decline in earnings, the company closed the quarter with a substantial cash reserve of Rs 9.6 billion.
Sri Lanka's foremost multinational textile manufacturer reported revenue of Rs 14 billion for the quarter ending June 30, marking a 41% reduction compared to the same period last year. Despite this, Teejay Lanka demonstrated its strength by posting a gross profit of Rs 283 million, showcasing its adaptability in volatile industries. However, the gross profit margin contracted to 2%, down from 6.9% in the previous quarter.
The company attributed the downturn to multiple factors, including sales drop, currency appreciation, fluctuating raw material costs, capacity underutilization, and inventory-related expenses. Teejay Lanka, however, reported a positive sign – reduced inventory levels during the quarter, in line with the overall supply chain adjustment.
Teejay Lanka's leadership expressed confidence in its resilience and recovery strategies. Chairman Mr.AjitGunewardene affirmed the deployment of necessary resources and the implementation of innovative long-term strategies to navigate market dynamics.
CEO Mr.Pubudu De Silva outlined the group's priorities for the future, including digitalization, a robust ESG framework, cost reduction, new product development, enhanced synthetic capacity, and empowering human capital.
Notably, Teejay Lanka holds a stake in the US Cotton Trust Protocol, and its ownership structure includes significant backing from Brandix Lanka and Pacific Textiles of Hong Kong.