TEEJAY LANKA PLC TEEJAY LANKA PLC
Condensed Interim Financial Statements
Period ended 31 December 2022
TEEJAY LANKA PLC
Review of the Financials
Teejay Group closed the third quarter of FY 2022/23 with a YTD Group revenue of LKR 66.8 Bn, a 84% increase YOY, and LKR 18.15 Bn Group revenue for the Q3, with 38% increase YOY. The growth is a result of the increase of average selling prices on a YoY basis and the depreciation of the Rupee.
The Group recorded a Gross Profit of LKR 5.2 Bn, representing a 61% increase for the 9 months ended period. However, the quarter under review recorded a 5% drop in the Group's Gross Profit margin. The Group observed capacity underutilization in all three plants due to the softness in the market, and that had an impact in the reported Gross Profit. The expanded capacity in India came into effect during the quarter under review, simultaneously reporting a spike in fixed costs further impacting the Group's GP margin.
The Distribution and Administration expenses of Teejay Group for the period under review stood at LKR 861 Mn which is a 69% increase when compared to the same quarter of the previous financial year. The key drivers behind the increase can be mentioned as the increases in rates of material costs and utility costs and the depreciation of the rupee.
The changes in taxation, that is the 214% and 140% increase in taxes for the Quarter and YTD respectively had a significant impact on the Teejay Group. The main cause for the fluctuation is the change in the tax rate from 14% to 30%. Further, the deferred tax will have a one-off impact on the Group during the year due to the increase in tax rates.
Despite the results reported during the quarter, the Teejay Group has remained resilient by recording an LKR 1.97 Bn profit, an increase of 17%, for the current 9-month period. However , the group reported a loss of LKR 365Mn as a result of the significant challenges faced during the quarter, the Group nevertheless reported a cash profit of LKR 612 Mn despite the low-capacity utilization.
The Group maintains a strong balance sheet with a cash balance of LKR 10.4 Bn, an increase of 132% when compared to December 2022. The reduction of inventory and the depreciation of the rupee had a positive impact as a result of factory slowdowns. The net debt as reduced as a result of the same, and has strengthened the Group's position as it increases focus on inventory reductions as a result of easing out of global supply chains.
The net asset base at the close of the quarter stood at LKR 36.2 Bn, with a value of LKR 50.52 net assets per share, representing 90% increase when compared to the same quarter of the previous financial year.
A crucial challenge faced by Teejay Group during the quarter was the presence of a low order book, an obstacle that is envisioned to remain unchanged for the upcoming two quarters. The strides made in the Group's operational excellence journey enabled Teejay to adapt a fresh new efficient model to reduce its breakeven point which peaked during the end of Q3. Resultantly, the Group is now geared to face the challenges of the upcoming two quarters due implementing a leaner operating model. Despite the volatilities in the market, Teejay remains confident that positives are not entirely absent. The China Plus One strategy acts as a bright prospect to the Textile and Apparel Industry, the expansion in India making it the main benefactor of the strategy, going forward.
Teejay will continue to explore opportunities for growth by discovering new business and evaluate the potential of capturing new international markets.
TEEJAY LANKA PLC
Statement of Profit or Loss
(all amounts in Sri Lanka Rupees Thousands)
Group | ||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Period Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
31 December | 31 December | 31 March | ||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Variance | 2022 | 2021 | Variance | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue from contracts with customers | 18,147,146 | 13,112,608 | 38% | 66,757,821 | 36,191,608 | 84% | 49,587,964 | |||||||||||||||||||||||||||||||||||||||||||
Cost of sales | (17,247,022) | (11,808,966) | -46% | (61,576,309) | (32,975,530) | -87% | (45,010,323) | |||||||||||||||||||||||||||||||||||||||||||
Gross profit | 900,124 | 1,303,642 | -31% | 5,181,512 | 3,216,078 | 61% | 4,577,641 | |||||||||||||||||||||||||||||||||||||||||||
4.96% | 9.94% | 7.76% | 8.89% | 9.23% | ||||||||||||||||||||||||||||||||||||||||||||||
Other operating income - net | 101,343 | 58,616 | 73% | 372,207 | 167,253 | 123% | 151,482 | |||||||||||||||||||||||||||||||||||||||||||
Distribution expenses | (159,406) | (78,716) | -103% | (446,078) | (186,951) | -139% | (369,517) | |||||||||||||||||||||||||||||||||||||||||||
Administrative expenses | (701,670) | (430,303) | -63% | (2,447,853) | (1,288,614) | -90% | (1,743,533) | |||||||||||||||||||||||||||||||||||||||||||
Net impairment gain/(loss) on financial assets | (17,912) | (4,055) | -342% | (157,024) | (37,307) | -321% | (42,970) | |||||||||||||||||||||||||||||||||||||||||||
Results from operating activities | 122,479 | 849,184 | -86% | 2,502,764 | 1,870,459 | 34% | 2,573,103 | |||||||||||||||||||||||||||||||||||||||||||
Finance income | 118,116 | 31,632 | 273% | 793,492 | 222,207 | 257% | 439,838 | |||||||||||||||||||||||||||||||||||||||||||
Financecosts | (265,060) | (34,668) | -665% | (594,124) | (98,020) | -506% | (149,221) | |||||||||||||||||||||||||||||||||||||||||||
Net finance income/(costs) | (146,944) | (3,037) | 4738% | 199,368 | 124,186 | 61% | 290,617 | |||||||||||||||||||||||||||||||||||||||||||
Profit before tax | (24,465) | 846,147 | -103% | 2,702,132 | 1,994,645 | 35% | 2,863,720 | |||||||||||||||||||||||||||||||||||||||||||
Income tax | (341,496) | (108,640) | -214% | (727,786) | (303,032) | -140% | (332,470) | |||||||||||||||||||||||||||||||||||||||||||
Profit for the period | (365,961) | 737,507 | -150% | 1,974,346 | 1,691,613 | 17% | 2,531,250 | |||||||||||||||||||||||||||||||||||||||||||
-2.02% | 5.62% | 2.96% | 4.67% | #REF! | 5.10% | |||||||||||||||||||||||||||||||||||||||||||||
2.96% | 5.10% | |||||||||||||||||||||||||||||||||||||||||||||||||
Attributable to: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity holders of the parent | (365,961) | 737,507 | -150% | 1,974,346 | 1,691,613 | 17% | 2,531,250 | |||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | Nil | Nil | Nil | Nil | Nil | Nil | Nil | |||||||||||||||||||||||||||||||||||||||||||
(365,961) | 737,507 | -150% | 1,974,346 | 1,691,613 | 17% | 2,531,250 | ||||||||||||||||||||||||||||||||||||||||||||
-2.02% | 5.62% | 2.96% | 4.67% | 5.10% | ||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share (LKR) | (0.51) | 1.03 | 2.75 | 2.36 | 3.54 | |||||||||||||||||||||||||||||||||||||||||||||
PE | (62.08) | 43.15 | 11.51 | 18.77 | 11.24 |
TEEJAY LANKA PLC
STATEMENT OF COMPREHENSIVE INCOME (all amounts in Sri Lanka Rupees Thousands)
Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Period Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31 December | 31 December | 31 March | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Variance | 2022 | 2021 | Variance | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit for the period | (365,961) | 737,507 | -150% | 1,974,346 | 1,691,613 | 17% | 2,531,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acturial gain/(loss) on defined benefit obligation | Nil | Nil | 0% | Nil | Nil | 0% | 203,673 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax credit/(charge) attributable to remeasurement of | Nil | Nil | 0% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
defined benefit obligation | Nil | Nil | 0% | (27,658) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation differences | 76,246 | 740 | 10204% | 7,082,032 | 160,545 | 4311% | 8,994,413 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income for the period | 76,246 | 740 | 10204% | 7,082,032 | 160,545 | 4311% | 9,170,428 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income for the period, net of tax | (289,715) | 738,247 | -139% | 9,056,378 | 1,852,158 | 389% | 11,701,678 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attributable to: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity holders of the parent | (289,715) | 738,247 | -139% | 9,056,378 | 1,852,158 | 389% | 11,701,678 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | Nil | Nil | Nil | Nil | Nil | Nil | Nil | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(289,715) | 738,247 | -139% | 9,056,378 | 1,852,158 | 389% | 11,701,678 |
TEEJAY LANKA PLC
Statement of Profit or Loss
(all amounts in Sri Lanka Rupees Thousands)
Company | ||||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Period Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||
31 December | 31 December | 31 March | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Variance | 2022 | 2021 | Variance | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||||||||||||||||||||||||||||||||||||||||||||
Revenue from contracts with customers | 11,941,196 | 7,886,076 | 51% | 39,918,345 | 21,738,523 | 84% | 29,438,073 | |||||||||||||||||||||||||||||||||||||||||
Cost of sales | (10,941,664) | (7,108,481) | -54% | (36,186,534) | (19,839,572) | -82% | (27,037,407) | |||||||||||||||||||||||||||||||||||||||||
Gross profit | 999,532 | 777,595 | 29% | 3,731,811 | 1,898,951 | 97% | 2,400,666 | |||||||||||||||||||||||||||||||||||||||||
8.4% | 9.9% | 9.3% | 8.7% | 8.2% | ||||||||||||||||||||||||||||||||||||||||||||
Other operating income - net | 328,748 | 236,939 | 39% | 1,717,809 | 664,363 | 159% | 847,058 | |||||||||||||||||||||||||||||||||||||||||
Distribution expenses | (123,444) | (68,298) | -81% | (354,202) | (160,417) | -121% | (209,613) | |||||||||||||||||||||||||||||||||||||||||
Administrative expenses | (339,440) | (219,835) | -54% | (1,134,822) | (689,768) | -65% | (744,599) | |||||||||||||||||||||||||||||||||||||||||
Net impairment gain/(loss) on financial assets | 31,633 | (9,142) | 446% | (43,039) | (22,891) | -88% | (18,239) | |||||||||||||||||||||||||||||||||||||||||
Results from operating activities | 897,029 | 717,259 | 25% | 3,917,557 | 1,690,238 | 132% | 2,275,273 | |||||||||||||||||||||||||||||||||||||||||
Finance income | 180,929 | 78,980 | 129% | 725,911 | 247,220 | 194% | 450,405 | |||||||||||||||||||||||||||||||||||||||||
Financecosts | (114,217) | (42,030) | -172% | (272,785) | (52,465) | -420% | (79,674) | |||||||||||||||||||||||||||||||||||||||||
Net finance income/(costs) | 66,712 | 36,950 | 81% | 453,126 | 194,755 | 133% | 370,731 | |||||||||||||||||||||||||||||||||||||||||
Profit before tax | 963,741 | 754,209 | 28% | 4,370,683 | 1,884,993 | 132% | 2,646,004 | |||||||||||||||||||||||||||||||||||||||||
Income tax | (355,468) | (68,912) | -416% | (607,903) | (180,019) | -238% | (270,498) | |||||||||||||||||||||||||||||||||||||||||
Profit for the period | 608,273 | 685,297 | -11% | 3,762,780 | 1,704,974 | 121% | 2,375,506 | |||||||||||||||||||||||||||||||||||||||||
9.43% | 7.84% | #REF! | ||||||||||||||||||||||||||||||||||||||||||||||
Attributable to: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity holders of the parent | 608,273 | 685,297 | -11% | 3,762,780 | 1,704,974 | 121% | 2,375,506 | |||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | Nil | Nil | Nil | Nil | Nil | |||||||||||||||||||||||||||||||||||||||||||
608,273 | 685,297 | -11% | 3,762,780 | 1,704,974 | 121% | 2,375,506 | ||||||||||||||||||||||||||||||||||||||||||
5.1% | 8.7% | 9.4% | 7.8% | 8.1% | ||||||||||||||||||||||||||||||||||||||||||||
9.43% | 8.07% | |||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share (LKR) | 0.85 | 0.96 | 5.25 | 2.38 | 3.04 |
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Teejay Lanka plc published this content on 09 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2023 10:25:04 UTC.
