Financials Q3: Cargills revenue sees 14.5% y-o-y increase

The Cargills Group revenue for the third quarter reached Rs. 70.8 billion, reflecting a 14.5% year-on-year increase, while EBITDA grew 29% to Rs. 7.3 billion. Profit After Tax rose 79.3% to Rs. 2.9 billion, bringing cumulative PAT for the first nine months of the year to Rs. 7.9 billion, a 53.8% increase year-on-year. 

Performance was supported by growth across core business sectors, improved margins, disciplined cost management, and lower finance costs, alongside stronger cash flow and working capital management.

Operations during the quarter were affected by the widespread impact of cyclone Ditwah, which caused temporary closures of retail outlets, restaurants, and manufacturing facilities, as well as supply-chain disruptions. All affected locations had resumed operations by early January 2026.

Despite these challenges, Retail, FMCG, and Restaurants segments recorded continued growth, supported by resilient consumer demand, distribution strength of the company, and ongoing operational improvements. The Restaurants business further strengthened its focus on the KFC franchise, discontinuing the TGI Fridays franchise arrangement effective 31 January 2026, a decision not expected to materially impact segment performance.

Cargills also contributed Rs. 100 million to the Government’s National Disaster Relief Fund and provided approximately Rs. 45 million worth of essential food and dry rations to affected communities. The Group purchases over Rs. 20 billion in agricultural produce and fresh milk from smallholder farmers across Sri Lanka every year, directing substantial income to the rural economy. Cargills is also one of the leading taxpayers and collectors in the country, contributing over Rs. 46 billion annually in taxes to the national coffers.

Looking ahead, the company expects near-term consumer spending to moderate slightly due to cyclone-related economic effects, while macroeconomic stability and long-term growth prospects remain intact. Cargills is expected to continue pursuing selective investments to grow its business, reflecting its confidence in the Sri Lankan economy.

Source - The Morning