The Teejay Group recorded revenue of LKR 15.64 billion in the quarter ended 30 June 2026 of FY2026/27, representing a marginal 1% year-on-year decline.
The muted performance was primarily driven by lower sales volumes, continued pricing pressure from key customers, and subdued demand across key markets. In addition, geopolitical disruptions, including the Strait of Hormuz crisis, which affected global supply chains and business operations, further impacted performance adversely.
Despite these headwinds, the Group continued to advance its strategic transformation agenda by optimizing its product mix, diversifying markets and enhancing cost competitiveness to strengthen resilience and support sustainable long-term growth.
Consequently, the Group recorded a gross profit of LKR 0.3 billion for the quarter ended 30th June 2026, reflecting a significant 75% year-on-year decline. The decrease in gross profit was primarily attributable to lower sales volumes and persistent margin pressures.
The Group reported a net loss of LKR 0.48 billion for the period under review, compared to a net profit recorded in the corresponding period of the previous year.
Meanwhile, distribution and administrative expenses for the quarter under review amounted to LKR 932 million and LKR 136 million, respectively, representing year-on-year reductions of 3% and 16.0% compared to the corresponding quarter of the previous financial year.
Ajit Gunewardene, Chairman of the Teejay Group, commented: “Periods of market uncertainty often provide the greatest opportunity to strengthen an organization for the future. While global market conditions remained challenging during the quarter, Teejay continued to execute its long-term transformation agenda with discipline and conviction.”
Despite the headwinds, the Group maintained a strong financial position at the close of the first quarter, supported by a robust balance sheet and a healthy cash balance of LKR 10.6 billion.
Pubudu De Silva, CEO of Teejay Group, stated: “The quarter presented a challenging operating environment, but we remained focused on strengthening the business through disciplined cost management, operational efficiencies and continued diversification of our product portfolio and markets.”
Picture: Chairman Ajit Gunewardene and CEO Pubudu De Silva
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