Cargills (Ceylon) PLC reported a net profit of Rs.2.63 billion for the three months ended 31 March 2026, a 31 percent rise from the Rs.2.01 billion recorded in the same quarter a year earlier, EconomyNext reported.
Group earnings reached Rs.10.19 per share for the quarter. Full-year profit for the fiscal year ended 31 March 2026 climbed to Rs.10.61 billion, up from Rs.7.22 billion in the previous year, while full-year operating profit grew 22.9 percent to Rs.18.70 billion.
Quarterly revenue rose 16.8 percent to Rs.69.52 billion, with growth across all major segments. Retail revenue advanced to Rs.51.16 billion from Rs.44.92 billion, with three new outlets added in the final quarter to take the total store network to 560 across the island. FMCG revenue rose to Rs.14.83 billion from Rs.11.69 billion, while restaurant revenue grew to Rs.3.53 billion from Rs.2.87 billion.
Net finance costs eased to Rs.878.5 million from Rs.957.8 million as the group cut net debt to Rs.16.1 billion from Rs.20.3 billion, supported by the Rs.4.45 billion net repayment of short-term borrowings during the year.
The quarter was hit by several non-recurring items. Cargills recognised Rs.858 million in losses on property, equipment and inventory due to Cyclone Ditwah, with Rs.650 million in insurance recoveries booked to date. A Rs.328 million loss on disposal was recorded after divesting a 6.54 percent stake in Cargills Bank PLC to meet regulatory requirements. Restaurant profitability was also affected by the write-off of the discontinued TGI Fridays franchise.
Management warned that rising energy prices, recent fuel hikes, rupee depreciation and higher consumer goods prices are expected to pressure household spending and consumption in the months ahead, with retail margins squeezed by higher electricity tariffs and staff costs. The earnings extend the corporate reporting season after John Keells Holdings posted a 218 percent surge in March quarter profit earlier on the same day.
