Cargills reports strong FY25 performance; 22.5% increase in Profit After Tax

Friday, 30 May 2025 00:33 - - {{hitsCtrl.values.hits}}

Cargills (Ceylon) PLC, one of Sri Lanka’s leading consumer companies, yesterday reported a strong financial performance for the financial year ending 31 March 2025, supported by volume-led growth across its key business segments—Retail, FMCG, and Restaurants.

Group revenue rose 8.2% year-on-year, with Profit After Tax (PAT) growing by 22.5%, reflecting improved consumer demand and the Group’s ongoing focus on efficiency, affordability, and innovation.

During the fourth quarter, revenue grew 9.4% to Rs. 59.5 billion, while operating profit rose by 14.9%. The company recorded a PAT of Rs. 2.1 billion for the quarter, up 7.8% from the same period last year.

The Retail sector, which comprises one of Sri Lanka’s most recognisable brands – Cargills Food City, recorded healthy growth in both footfall and average basket value, even amidst deflationary conditions. The Retail Leadership attributed this to targeted promotional strategies and investment in affordable pricing to drive savings for shoppers. Eight new stores were added during the quarter, taking the total store count to 545.

In FMCG, Cargills delivered volume growth across all major categories. With VAT removed on UHT milk and yoghurt from April 2025, the company has passed on price reductions to consumers, helping further drive demand. The Cargills FMCG portfolio includes brands such as Kotmale, Magic, Kist, Ride Energy Drink, Goldi and so on.

The Restaurants sector, anchored by KFC, recorded double-digit growth with new store additions and steady same-store performance. The company now operates 78 KFC outlets across the country.

Cargills continues to make a substantial contribution to Sri Lanka’s economy, generating over Rs. 3.5 billion per month in tax revenue and nearly Rs. 2 billion per month in direct payments to rural farmers. Through its sourcing operations, Cargills remains the country’s largest buyer of fresh produce and milk, working directly with thousands of smallholder farmers.

Looking ahead, the company remains optimistic, supported by a stable macroeconomic environment, improved consumer sentiment, and ongoing structural reforms.

Commenting on the results, Deputy Chairman and CEO Ranjit Page said: “This performance reflects the strength and resilience of the Cargills business model, built over decades of commitment to the Sri Lankan consumer. We have continued to grow despite external challenges, supported by a clear strategy, a dedicated team, and the trust of our customers and partners. We remain committed to building a stronger, more inclusive economy by investing in our communities, reaching more consumers, and strengthening our portfolio of trusted brands. As we move forward, our focus will remain on innovation, operational excellence, and delivering long-term value to all our stakeholders.”

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