BPPL Holdings PLC witnessed a significant improvement in its financial performance during the three months ended 30 September 2024, compared to both the corresponding quarter in FY2023/24 and the three months ended 30 June 2024.

Consolidated revenue for the three months until 30 September 2024 was Rs. 1.6 billion, a growth of 5% in Rupee terms and 11% in US Dollar terms over the same period in the previous year. EBITDA for the period was Rs. 356 million compared to Rs. 233 million in the corresponding period the previous year, a growth of 53%. Net earnings after tax were up 85% to Rs. 184 million, compared to Rs. 99 million in the previous year.

The revenue of Rs. 1.6 billion for the quarter under review is an increase of 15% from that of the previous first quarter, mirroring the growth in brush sales as well as recycled polyester yarn. Resultantly, EBITDA grew by 104% QoQ, due to higher revenue and gross margins during the quarter, and net earnings by over 100%, compared with a loss of Rs. 19 million.

The increase in group revenue is due to an improvement in the operating environment in the brush segment, as well as higher-than-industry-average growth in the yarn segment.

The overall improvement in EBITDA during the quarter under review was the outcome of improved gross margins arising from higher volumes and savings in utility costs. Several internal initiatives are also underway towards improving gross margins across its business segments, the benefits of which will be seen over the forthcoming quarters.

“We expect the momentum in the brush segment to remain over the next two quarters of the current financial year due to new customer acquisitions and product development, though the sustenance of this trend over the medium term would depend on an overall improvement to global economic sentiment and further easing of interest rates, particularly in the US,” BPPL Holdings PLC Managing Director/CEO Dr. Anush Amarasinghe said.