Royal Ceramics Lanka 1Q25 earnings up 1.5% YoY

Porcelain and ceramic manufacturer, Royal Ceramics Lanka PLC Group, for the quarter ended June 30 (1Q25), saw its earnings marginally improve by 1.5 percent from the corresponding period of the previous year to Rs.905 million, due to the reduction in the net finance cost. 
When compared with the previous quarter, the earnings contracted by 39.6 percent, due to the narrowing in the operating margins and net revenue.
The group’s revenue in 1Q25 totalled Rs.11.95 billion, down 5.9 percent from the Rs.12.70 billion recorded in the corresponding period of the previous year. From the previous quarter, revenue reduced by 8 percent.

The segmental analysis shows that contributing to the revenue drop of the group was the tile and associated product segments, which contracted by 24.5 percent year-on-year (YoY) to Rs.7.1 billion. Revenue from sanitary ware, aluminium and packaging expanded to Rs.746 million, Rs.2.25 billion and Rs.2.12 billion.
The group’s distribution expenses grew by 4 percent YoY, while the administration expenses were up by 13 percent. Other operating expenses reduced by about 100 percent. The EBIT margins contracted by 10.3 percent in 1Q25.
The net finance cost reduced by 42.1 percent YoY, due to the reduction in the interest rates.
The group’s profit before tax recorded Rs.782 million, a 7 percent contraction from Rs.836 million recorded in 1Q24.
Vallibel One PLC, the investment vehicle of investor Dhammika Perera, has a 55.96 percent stake in Royal Ceramics, while the Employees’ Provident Fund has a 13.79 percent stake, being the second largest shareholder.