LOLC Group reports Rs. 41 billion profit and surpasses Rs. 2 trillion in total assets, driven by global growth momentum

LOLC Group has reported a profit after tax of Rs. 41 billion for the financial year 2024/25, reflecting an 89% increase over the previous year, supported by an operating profit of Rs. 48 billion. The robust performance was fueled by steady expansion in financial services, a series of strategic international acquisitions, and improving economic conditions in Sri Lanka.

Now operating in over 25 countries, LOLC continues to solidify its status as Sri Lanka’s most internationally diversified corporate group operating in financial services, agriculture, plantation, automotive, manufacturing, construction, marine, power generation, pharmaceuticals and leisure.

The Group’s total assets climbed 17% to Rs. 2.03 trillion, while shareholder equity advanced to Rs. 343 billion, marking a 15% gain. Its total debt-to-equity ratio improved to 1.05 times from 1.2 times, signaling greater balance sheet strength despite an active investment pipeline.

African Expansion Reinforces Global Reach

LOLC’s investment strategy over the past year has prominently featured acquisitions in Africa’s tea sector. Following its 2023 acquisition of Finlays’ Kenyan operations, the Group acquired Lipton’s plantations in Kenya, Rwanda, and Tanzania. These transactions represent LOLC’s deepening interest in real economy sectors and its intention to become a key player in the global tea supply chain.

Domestically, the Group consolidated its presence in industrial manufacturing by converting its minority stake in Sierra Cables PLC into a controlling interest. After the close of the financial year, LOLC also acquired ownership Pussellawa Plantations, and a controlling stake in Tea Smallholder Factories PLC. These steps are expected to enhance vertical integration and operating leverage within the Group’s plantation holdings. With these additions, LOLC Group now operates with an annual production capacity of approximately 100 million kilograms of made tea grown in approximately 100,000 hectares of plantations.

Financial Services Continue to Drive Earnings

Financial services continue to anchor the Group’s profitability with the segment contributed Rs. 41 billion to the Rs. 52 billion profit before tax from continuing operations, reaffirming its position as the Group’s primary earnings engine.

LOLC Finance PLC led the sector's growth, recording a pre-tax profit of Rs. 30.8 billion—a 23% year-on-year increase. The company’s loan portfolio surpassed Rs. 305 billion, while customer deposits reached Rs. 225 billion. A sharp reduction in the net non-performing loan ratio from 10.48% to 4.97% reflects a marked improvement in asset quality and credit risk management. This performance is underpinned by a robust capital base of Rs. 150 billion, translating to a capital adequacy ratio of over 25%, well above the regulatory minimum of 17%.

The Group’s financial services network continues to grow across underserved and high-potential markets in South Asia, Southeast Asia, Central Asia, and Africa, where the demand for inclusive lending and microfinance solutions remains strong. Building on this momentum,

the Group is now actively evaluating strategic expansion opportunities in South America, with the aim of further extending its global presence and impact in financial inclusion.

Sectoral Diversification Supports Earnings Resilience

Beyond financial services, LOLC’s manufacturing and trading segment posted an operating profit before interest of Rs. 4.2 billion, benefitting from favorable economic indicators in Sri Lanka such as currency stabilization, cooling inflation, and a rebound in GDP growth.

In the tourism sector, the Group’s leisure and entertainment businesses generated Rs. 2.8 billion in operating profit before interest, supported by a recovery in international tourist arrivals. With inbound travel volumes approaching pre-COVID levels, LOLC’s hospitality assets in Sri Lanka, Maldives and Mauritius are poised to benefit further in the coming year.

The plantation segment also made notable contributions, with Udapussellawa Plantations PLC and Hapugastenne Plantations PLC recording pre-tax profits of Rs. 883 million and Rs. 614 million respectively. The Group plans to replicate Sri Lanka’s operational best practices across its newly acquired African estates.

LOLC’s results reflect its strategic ambition to build a diversified, globally relevant enterprise with a strong presence in both high-growth frontier markets and Sri Lanka’s domestic economy. Its multisector portfolio spanning financial services, agriculture, plantation, automotive, manufacturing, construction, marine, power generation, pharmaceuticals and leisure has helped mitigate exposure to any single market or sector.

With disciplined capital management and a clear roadmap for integrating recent acquisitions, the Group is well positioned to sustain its growth trajectory and unlock long-term value across geographies and industries.