Business
Resilient Teejay bounces back in Q2 amidst improving industry sentiments
Top textile maker Teejay Lanka PLC has achieved a remarkable recovery from its first quarter losses to post strong top and bottom line figures for the second quarter of 2023-24, a company news release said.
“Sri Lanka’s first multinational textile manufacturer has reported profit before tax of Rs 1.2 billion for the three months ending September 30, 2023, reflecting a gain of Rs 1.9 billion over the pre-tax loss of Rs 701 million in the preceding quarter, recording quarter-on-quarter growth of 275%,” it said.
“The Group’s net profit of Rs 943 million for the three months was a gain of Rs 1.8 billion over the net loss of Rs 853 million reported for the first quarter of 2023-24, and represented a quarter-on-quarter gain of 211%.
“Revenue for the quarter reviewed, at Rs 15.5 billion, was up 11% over the preceding quarter’s figure of Rs 14 billion, Teejay Lanka PLC said in a filing with the Colombo Stock Exchange (CSE).”
Commenting on the Group’s second quarter turnaround, Teejay Lanka Chairman Mr Ajit Gunewardene said it was the result of a series of strategic initiatives implemented during the quarter as well as changing market conditions generating optimism for improved performances in the upcoming quarters, even though the second quarter’s and first half’s figures were lower than those of the corresponding periods of last year.
He attributed these decreases to a drop in sales volume driven by present market conditions, the appreciation of the Sri Lanka Rupee, and underutilisation of capacity. “The on-going industry volatilities have posed persistent challenges,” Mr Gunewardene said, “but our performance in the second quarter highlights the positive momentum and growth within the Group, demonstrating its resilience in a challenging economic backdrop.”
The Group expressed concern about the changes in taxation during the quarter under review, with the introduction of a new tax policy resulting in a 121% increase in taxes for the Group.
For the six months ending September 30, 2023, Teejay Lanka reported revenue of Rs 29.5 billion, profit before tax of Rs 522.9 million, and net profit of Rs 90 million, reflecting declines of 39%, 81% and 96% respectively over the first half of 2022-23.
However, the Teejay Group has presented a strong Balance Sheet, concluding the period under review with a noteworthy cash and cash equivalents balance of Rs 12.9 billion.
Elaborating on the second quarter recovery achieved by the Group, Teejay Lanka CEO Mr Pubudu De Silva said strategies such as identifying new customers, introducing new product segments, capacity management and optimisation and inventory management while investing in advanced infrastructure, and enhancing the necessary skills and expertise to adapt to evolving industry dynamics had contributed to the turnaround. “These efforts have positioned Teejay to effectively meet the changing needs of Sri Lanka, India, and our sales office in Bangladesh,” he added.
Teejay Lanka was the first textile manufacturer in Sri Lanka to receive membership of the US Cotton Trust Protocol, and is a public quoted company with 40 per cent public ownership. The company is backed by Sri Lanka’s largest apparel exporter Brandix Lanka which has a 33 per cent stake. Pacific Textiles of Hong Kong, whose key shareholder is the Tokyo Stock Exchange listed Toray Industries Inc., owns 27 per cent of Teejay Lanka.
An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay Lanka was ranked the No 1 corporate entity among 100 public listed companies in Sri Lanka for Transparency in Corporate Reporting in the TRAC 2022 assessment carried out by Transparency International Sri Lanka (TISL), the local arm of the international corruption watchdog. The TISL assessment was carried out on three areas crucial to fighting and preventing corruption: reporting on anti-corruption programmes, transparency in company holdings and the disclosure of key financial information in domestic operations.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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