JAT says in talks for potential acquisition to expand global footprint

Monday, 11 August 2025 05:56 - - {{hitsCtrl.values.hits}}

JAT Holdings PLC (JAT) is currently engaged in discussions regarding a potential acquisition.

“This initiative aligns with JAT’s strategic vision to expand its global footprint and enhance its market position,” JAT said in a filing to the Colombo Stock Exchange (CSE).

It said further details regarding the acquisition will be disclosed to the market on the completion of the due diligence, in accordance with the Listing Rules of the CSE.

The leading conglomerate in Sri Lanka’s manufacturing and coatings industry, JAT’s FY25 international expansion was marked by the opening of JAT’s SEAFORM showroom in Perth, along with the first wood coating shipment to Australia, and the JAT Tech Centre in Cambodia.

In FY25, JAT achieved the highest-ever annual pre-tax and post-tax profit. Operating profit rose by 37% to Rs. 1.86 billion, while net profit rose by 74% to Rs. 1.78 billion.

The company recorded a revenue of Rs. 11.6 billion, reflecting marginal year-on-year (YoY) growth. This was primarily impacted by a 26% decline in export revenues from Bangladesh, driven by prevailing political and economic instability in the region and the significant depreciation of the Bangladeshi currency against the Sri Lankan Rupee.

However, this decline was partially offset by improved performance in other markets. Revenue from Sri Lanka grew by 14%, while combined revenue from other international markets increased by 12%. Notably, the revenue contribution from Bangladesh, which typically accounts for over 30% in an average year, dropped to 23% in FY 2024/25, compounded by three months of business disruption due to economic and political instability in the country.

Key product segments showed significant growth, including Wood Coatings (5%), Emulsions (37%), Brushes and Rollers (42%), and Projects (171%) – the latter being aided by the lifting of import restrictions.

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