Cargills reports strong Q1 performance

Monday, 11 August 2025 05:57 - - {{hitsCtrl.values.hits}}

Reinforces commitment to national development

Cargills (Ceylon) PLC has posted a robust start to the 2025/26 financial year, recording a 46.3% year-on-year (YoY) increase in Group Profit After Tax (PAT) to Rs. 2.2 billion for the quarter ended 30 June 2025, the company said in a statement.

Group revenue rose 11.2% to Rs. 66.7 billion, driven by strong topline growth across the core segments—Retail, FMCG, and Restaurants. Earnings Before Interest, Taxes, Depreciation, And Amortisation (EBITDA) for the quarter increased by 11.9% to Rs. 6.5 billion.

This performance was supported by seasonal demand, sustained operational efficiencies, and lower finance costs, despite rising overhead expenses.

The Retail segment, comprising Cargills Food City, added three new outlets during the quarter, bringing the total store count to 546. Sales grew by 9.7%, with profitability supported by higher volumes, effective cost control, and improved operational efficiency. The FMCG segment recorded double-digit volume growth across dairy, ice cream, convenience food, and beverages, driving a 17.3% increase in revenue. The Restaurants segment, led by KFC, delivered 13.5% turnover growth, supported by strong customer retention following selective price adjustments and new product introductions.

Cargills said it continues to make a significant contribution to Sri Lanka’s economy and society. Each month, the Group channels nearly Rs. 2 billion in direct income to rural farmers through its purchases of fruits, vegetables, and fresh milk. As one of the country’s leading taxpayers, Cargills contributes over Rs. 3.5 billion monthly to the Government Treasury through sales and income taxes.

The company also advances sustainability through its growing solar power initiative, now covering over 100 retail locations and most of its food processing facilities.

“With macroeconomic stability gradually improving and consumer confidence returning, Cargills remains cautiously optimistic about the outlook. The Group is expected to invest selectively in growth and innovation, while remaining focused on its mission of creating shared value—empowering farmers, uplifting communities, and delivering affordable essentials to consumers across the country,” the company said.

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