JAT Crosses Rs. 1 Billion PAT Amidst Strong Q3 Performance

• YTD Local revenue increase by 10%
• 47% revenue increase in Bangladesh in Q3 against Q2
• Overall GP margin increase by 5%
• Operational profit margin increases by 4% in Q3 signaling growth
• YTD PAT increase by 74% with margin increase of 6%

JAT Holdings PLC has recorded a stellar performance for Q3 of FY 2024/25, crossing the Rs. 1 billion mark in Profit After Tax (PAT) for the first nine months of the financial year. Local operations continued to demonstrate resilience, with revenue reaching Rs. 5,571 million in the first 9 months, reflecting a steady 10% YoY growth.

The Group’s flagship product, Sayerlack, in the wood coatings category, registered a 5% growth, reinforcing its strong market position. The Masters brand continued its upward trajectory with an 8% YoY growth, reflecting increasing consumer demand. The Brush category experienced substantial expansion, recording a 27% YoY increase, underscoring growing consumer preference for JAT’s product range. Project sales surged by an impressive 244%, showcasing the success of the Group’s strategic initiatives and market penetration efforts.

While export revenue faced headwinds due to economic and political instability in Bangladesh and the economic downturn in the Maldives, JAT Holdings remains committed to navigating these challenges. A notable factor affecting revenue from Bangladesh was the exchange rate impact, which contributed to a 14% decline when comparing the first nine months of the past two years.

Despite these challenges, Q3 recorded a 30% growth in total sales revenue compared to Q2 of the same fiscal year and a 1% growth compared to Q3 of the previous fiscal year, demonstrating consistent and positive performance. These results reinforce JAT’s ability to drive growth while adapting to external market dynamics.

For the quarter ending December 31, 2024, JAT Holdings’ Gross Profit was recorded at Rs. 1,207 million, while year-to-date (YTD) Gross Profits reached Rs. 2,600 million, reflecting a 13% YoY growth. The YTD Gross Profit margin stands at 34%, marking a 5% YoY improvement, powered by backward vertical integration, which has significantly reduced input costs, enhanced supply chain resilience, and improved production efficiencies across key manufacturing segments. Significant cost savings were realized from the Acrylic Binder and Alkyd Resin Manufacturing Plants, reducing production costs and enhancing profitability. These efficiencies are expected to further strengthen margins in the upcoming quarters as optimization efforts continue.

PAT recorded for the quarter was Rs. 490 million, while year-to-date (YTD) PAT reached Rs. 1,002 million, reflecting a 74% YoY growth, driven by the capitalization of the Acrylic Binder Manufacturing Plant assets, which contributed to improved cost efficiencies and strengthened profitability.

Despite the macroeconomic challenges in Bangladesh, JAT Holdings recorded an impressive 47% quarter-on-quarter (Q3 against Q2) increase in revenue from Bangladesh, highlighting a strong recovery in the region. Additionally, JAT’s newly launched product in Bangladesh, Coat-Ex, has made its market entry and is gradually building its presence, marking a promising start in its journey.

As the Group heads into the season, operational profit margins have improved from 14% to 18%, a direct result of JAT’s continuous cost optimization strategies and investments in backward vertical integration. The Acrylic Binder Manufacturing Plant and Alkyd Resin Manufacturing Plant remain pivotal to these efficiencies, reducing reliance on external suppliers and strengthening overall cost structures.

Nishal Ferdinando – Director/CEO of JAT Holdings PLC, commented: "Our strong Q3 performance underscores the success of our strategic investments in vertical integration and operational efficiency. By streamlining our production processes and enhancing cost efficiencies, we have positioned ourselves to navigate market challenges effectively while driving sustainable growth. With a stable market presence in Bangladesh and the introduction of new product lines, we continue to strengthen our presence across key markets, reinforcing JAT’s reputation as an industry leader." 

JAT Holdings PLC further strengthened its product portfolio with the successful launch of JChem One Coat in Sri Lanka, an innovative addition to the wood coatings segment, designed to enhance durability and ease of application. In addition, JAT Holdings unveiled the JAT Lifestyle Studio, an immersive space designed to showcase its innovative approach to lifestyle and design. With the opening of this showroom, the Group now operates four kitchen showrooms—two in Sri Lanka, one in Perth, Australia, and one in Bangladesh—further solidifying its presence in the premium home solutions market.

With promising market indicators, JAT Holdings is well-positioned to capitalize on emerging opportunities. The Sri Lankan construction sector is showing steady recovery, as evidenced by the PMI for manufacturing, which indicates increased construction activity. The sector’s YoY growth remained positive in Q3, marking the fourth consecutive quarter of recovery and signaling sustained momentum for the industry. AWPLR is gradually decreasing, while furniture manufacturing and wood production indices are showing steady improvement, further signaling a recovery in the industry. These positive trends create a favorable environment for JAT Holdings to leverage its market-leading position and drive sustained growth.

JAT Holdings’ excellence and industry leadership were also recognized through multiple prestigious awards:

• CMA Excellence in Integrated Reporting Awards 2024 – Ten Best Integrated Reports and Best Integrated Report of Trade & Commerce Sector
• TAGS Awards 2024 – Bronze award in Manufacturing Sector (Group turnover up to LKR 20 Bn)
• SLIM Brand Excellence Awards 2024 – Bronze for Best B2B Brand of the Year and Bronze for Best CSR Brand of the Year (JAT Pintharoo Abhiman)

JAT Holdings continues to solidify its market leadership by leveraging its advanced manufacturing facilities in Sri Lanka and Bangladesh, alongside its cutting-edge R&D capabilities. The Group’s commitment to expanding its regional footprint, coupled with its strategic focus on cost efficiency, positions JAT for sustained long-term growth.