TEEJAY LANKA PLC TEEJAY LANKA PLC
Condensed Interim Financial Statements
Period ended 31 December 2021
TEEJAY LANKA PLC
Chairman's Review
I am pleased to share that Teejay Group has recorded a revenue of LKR 36 Bn for the nine-month period ending 31st December 2021, which is a 64% YOY growth and net profit of LKR 1.7Bn, 23% increase over the last year. The revenue increase was a result of improved demand from the region and enhanced capacity as the impact of Covid was not as disruptive as the previous year. The greater volumes were delivered with the larger capacity within the group inclusive of our outsourced partners' support during the 9 months.
Gross profit of the group was recorded at LKR 3.2 Bn an increase of 23% compared to last year with the increased volumes generated during the year. However, the margin has been impacted within the nine months of the year as a result of the increase in commodity prices affecting yarn, energy, freight, dyes, chemicals and auxiliaries. The increase in commodities has been the biggest challenge during the year but efficiency within the Group derived from our operational excellence journey has supported to improve productivity across the group despite the increase in prices of all the key raw materials.
During the quarter under review, Group recorded revenue of LKR 13 Bn a 53% increase and a Net profit of LKR 738 Mn, 5% reduction compared to LY. This was a consequence of increased commodity prices, to which price increases have been transferred to customers. However, as a result of the timing in commodity price increases against selling price increases, the margin has been impacted during the quarter and full year.
Teejay Group continued with a strong balance sheet and supported the required increase in inventory due to supply chain disruptions. The quarter was closed with a cash balance of LKR 4.5 Bn.
The USD 26 Mn expansion project of Teejay India is well in progress within the planned timelines and I am glad to share that it will commence operations, from February and will be fully loaded to give the 20-ton output by September 2022. This expansion was implemented prior to commodity increases benefiting the group from an investment perspective as well as a timing perspective, positioning Teejay to benefit from the shift in global supply chain strategies of our strategic customers. In addition, Teejay Group is moving towards an integrated ERP solution with the implementation of SAP S4 HANA, to take advantage of the expansion across the Group. Given the above factors, the Group remains confident of maintaining growth and delivering value to shareholders on a continuous basis.
Bill Lam
Chairman
TEEJAY LANKA PLC
INCOME STATEMENT
(all amounts in Sri Lanka Rupees Thousands)
Group | |||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Period Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||||
31 December | 31 December | 31 March | |||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Variance | 2021 | 2020 | Variance | 2021 | |||||||||||||||||||||||||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Audited | |||||||||||||||||||||||||||||||||||||||
Revenue from contracts with customers | 13,112,608 | 8,559,281 | 53% | 36,191,608 | 22,082,470 | 64% | 31,780,287 | ||||||||||||||||||||||||||||||||||||
Cost of sales | (11,808,966) | (7,273,502) | -62% | (32,975,530) | (19,466,331) | -69% | (27,990,328) | ||||||||||||||||||||||||||||||||||||
Gross profit | 1,303,642 | 1,285,779 | 1% | 3,216,078 | 2,616,139 | 23% | 3,789,959 | ||||||||||||||||||||||||||||||||||||
9.94% | 15.02% | 8.89% | 11.85% | ||||||||||||||||||||||||||||||||||||||||
Other income | 58,616 | 47,649 | 23% | 167,253 | 114,265 | 46% | 185,662 | ||||||||||||||||||||||||||||||||||||
Distribution expenses | (78,716) | (37,591) | -109% | (186,951) | (107,908) | -73% | (177,672) | ||||||||||||||||||||||||||||||||||||
Administrative expenses | (430,303) | (368,512) | -17% | (1,288,614) | (937,843) | -37% | (1,392,044) | ||||||||||||||||||||||||||||||||||||
Net impairment gain/(loss) on financial assets | (4,055) | (7,619) | -47% | (37,307) | 21,729 | -272% | 35,497 | ||||||||||||||||||||||||||||||||||||
Results from operating activities | 849,184 | 919,706 | -8% | 1,870,459 | 1,706,382 | 10% | 2,441,402 | ||||||||||||||||||||||||||||||||||||
Finance income | 121,709 | 58,325 | 109% | 289,054 | 136,821 | 111% | 276,786 | ||||||||||||||||||||||||||||||||||||
Finance costs | (124,746) | (26,229) | -376% | (164,868) | (95,045) | -73% | (118,851) | ||||||||||||||||||||||||||||||||||||
Net financeincome/(costs) | (3,037) | 32,096 | -109% | 124,186 | 41,776 | 197% | 157,935 | ||||||||||||||||||||||||||||||||||||
Profit before tax | 846,147 | 951,802 | -11% | 1,994,645 | 1,748,158 | 14% | 2,599,337 | ||||||||||||||||||||||||||||||||||||
Income tax | (108,640) | (173,337) | 37% | (303,032) | (369,859) | 18% | (459,735) | ||||||||||||||||||||||||||||||||||||
Profit for the period | 737,507 | 778,465 | -5% | 1,691,613 | 1,378,299 | 23% | 2,139,602 | ||||||||||||||||||||||||||||||||||||
9.09% | 4.67% | ||||||||||||||||||||||||||||||||||||||||||
Attributable to: | |||||||||||||||||||||||||||||||||||||||||||
Equity holders of the parent | 737,507 | 778,465 | -5% | 1,691,613 | 1,378,299 | 23% | 2,139,602 | ||||||||||||||||||||||||||||||||||||
Non-controlling interest | Nil | Nil | Nil | Nil | Nil | Nil | Nil | ||||||||||||||||||||||||||||||||||||
737,507 | 778,465 | -5% | 1,691,613 | 1,378,299 | 23% | 2,139,602 | |||||||||||||||||||||||||||||||||||||
Basic earnings per share (LKR) | 1.03 | 1.10 | 2.36 | 1.94 | 3.04 |
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Variance | 2021 | 2020 | Variance | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit for the period | 737,507 | 778,465 | -5% | 1,691,613 | 1,378,299 | 23% | 2,139,602 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on remeasurement of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
retirement benefit obligations | Nil | Nil | 0% | Nil | Nil | 0% | (72,815) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax attributable to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
remeasurement of retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
benefit obligations | Nil | Nil | 0% | Nil | Nil | 0% | 8,483 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net movement on cash flow hedges | Nil | Nil | 0% | Nil | Nil | 0% | Nil | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation differences | 740 | 98,943 | -99% | 160,545 | (273,360) | -159% | 961,858 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income for the period | 740 | 98,943 | -99% | 160,545 | (273,360) | -159% | 897,526 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income for the period | 738,247 | 877,408 | -16% | 1,852,158 | 1,104,939 | 68% | 3,037,128 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Attributable to: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity holders of the parent | 738,247 | 877,408 | -16% | 1,852,158 | 1,104,939 | 68% | 3,037,128 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | Nil | Nil | Nil | Nil | Nil | Nil | Nil | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
738,247 | 877,408 | -16% | 1,852,158 | 1,104,939 | 68% | 3,037,128 |
TEEJAY LANKA PLC
INCOME STATEMENT
(all amounts in Sri Lanka Rupees Thousands)
Company | |||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Period Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||||||||
31 December | 31 December | 31 March | |||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Variance | 2021 | 2020 | Variance | 2021 | |||||||||||||||||||||||||||||||||||||||||
Unaudited | Unaudited | Unaudited | Unaudited | Audited | |||||||||||||||||||||||||||||||||||||||||||
Revenue from contracts with customers | 7,886,076 | 5,173,954 | 52% | 21,738,523 | 14,662,739 | 48% | 20,965,296 | ||||||||||||||||||||||||||||||||||||||||
Cost of sales | (7,108,481) | (4,460,695) | -59% | (19,839,572) | (13,005,342) | -53% | (18,803,018) | ||||||||||||||||||||||||||||||||||||||||
Gross profit | 777,595 | 713,259 | 9% | 1,898,951 | 1,657,397 | 15% | 2,162,278 | ||||||||||||||||||||||||||||||||||||||||
9.9% | 13.8% | 8.7% | 11.3% | ||||||||||||||||||||||||||||||||||||||||||||
Other income | 236,939 | 141,356 | 68% | 664,363 | 358,128 | 86% | 533,747 | ||||||||||||||||||||||||||||||||||||||||
Distribution expenses | (68,298) | (31,300) | -118% | (160,417) | (89,191) | -80% | (116,550) | ||||||||||||||||||||||||||||||||||||||||
Administrative expenses | (219,835) | (212,289) | -4% | (689,768) | (526,318) | -31% | (713,990) | ||||||||||||||||||||||||||||||||||||||||
Net impairment gain/(loss) on financial assets | (9,142) | (2,468) | 270% | (22,891) | 14,569 | -257% | 26,829 | ||||||||||||||||||||||||||||||||||||||||
Results from operating activities | 717,259 | 608,558 | 18% | 1,690,238 | 1,414,585 | 19% | 1,892,314 | ||||||||||||||||||||||||||||||||||||||||
Finance income | 78,980 | 51,215 | 54% | 247,220 | 137,245 | 80% | 266,133 | ||||||||||||||||||||||||||||||||||||||||
Finance costs | (42,030) | (3,915) | -974% | (52,465) | (11,405) | -360% | (18,553) | ||||||||||||||||||||||||||||||||||||||||
Net financeincome/(costs) | 36,950 | 47,300 | -22% | 194,755 | 125,840 | 55% | 247,580 | ||||||||||||||||||||||||||||||||||||||||
Profit before tax | 754,209 | 655,858 | 15% | 1,884,993 | 1,540,425 | 22% | 2,139,894 | ||||||||||||||||||||||||||||||||||||||||
Income tax | (68,912) | (82,231) | 16% | (180,019) | (205,046) | 12% | (229,413) | ||||||||||||||||||||||||||||||||||||||||
Profit for the period | 685,297 | 573,627 | 19% | 1,704,974 | 1,335,379 | 28% | 1,910,481 | ||||||||||||||||||||||||||||||||||||||||
8.69% | 11.09% | 7.84% | 9.11% | 9.11% | |||||||||||||||||||||||||||||||||||||||||||
Attributable to: | |||||||||||||||||||||||||||||||||||||||||||||||
Equity holders of the parent | 685,297 | 573,627 | 19% | 1,704,974 | 1,335,379 | 28% | 1,910,481 | ||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | Nil | Nil | Nil | Nil | Nil | ||||||||||||||||||||||||||||||||||||||||||
685,297 | 573,627 | 19% | 1,704,974 | 1,335,379 | 28% | 1,910,481 | |||||||||||||||||||||||||||||||||||||||||
Basic earnings per share (LKR) | 0.96 | 0.81 | 2.38 | 1.88 | 2.72 |
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Teejay Lanka plc published this content on 02 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2022 11:18:11 UTC.
