Vallibel One Group ends FY24 with net profit of Rs.17.44bn

Vallibel One Group recorded a net profit of Rs.17.44 billion for the financial year 2023-24, where the performance is underscored by a robust final quarter (January-March 2024), the company said in a commentary that followed the release of the financial results.
In the final quarter, the group posted a revenue of Rs.27.78 billion, contributing to a cumulative annual revenue of Rs.122.33 billion, while gross profit recorded a 7.40 percent year-on-year growth to reach Rs.54.40 billion, up from Rs.50.65 billion in 2022/23.

Vallibel One’s profit before tax for the final quarter stood at Rs.6.89 billion, culminating in an annual profit before tax of Rs.26.55 billion. 
This marks a 6 percent growth, compared to the Rs.25.08 billion recorded in the previous year. 
However, an income tax hike of 21 percent impacted the overall profitability, resulting in a 2 percent decline in profit after tax, which amounted to Rs.17.44 billion, Vallibel One said.
The group’s performance was bolstered by significant contributions from its finance sector, which saw revenue increases of 15 percent. Despite facing the volatile interest rates, import bans and evolving market dynamics, the finance sector achieved its best performance to date. 
The lifestyle sector posted a profit after tax of Rs.6.29 billion, whereas the aluminium sector demonstrated commendable performance, driven by growth in the domestic market and an expansion in its export business during the year. 
As the tourism industry experienced a positive environment with a notable increase in tourist arrivals from December 2023, the leisure sector recorded an increased performance for the year. 
Despite a significant decline in consumer spending and reduced demand across various retail channels, the group’s consumer arm effectively managed its costs to achieve positive results. The packaging cluster faced a highly competitive market with excess supply, exacerbated by global supply chain disruptions and high raw material costs, resulting in subdued performance.