Colombo, 31 August 2026 – Maskeliya Plantations PLC (CSE: MASK), a cornerstone of Sri Lanka’s premium tea industry, today announced the release of its Integrated Annual Report for the financial year ended 31st March 2026. The report, marking the company’s inaugural integrated submission aligned with international sustainability disclosure standards, showcases a robust financial performance, strategic operational advancements, and an intensified commitment to environmental, social, and governance (ESG) principles.
Strong Financial Performance Amidst Global Volatility
The financial year 2025/26 saw Maskeliya Plantations PLC achieve a significant milestone, surpassing LKR 7.0 billion in total turnover, a commendable 5% increase from the previous year’s LKR 6.73 billion. This marks the fifth consecutive year of revenue growth, underscoring the company’s operational resilience in a challenging global economic climate. Over the past five years, turnover has surged by approximately 76%, demonstrating sustained market demand for its premium Ceylon tea.
Despite significant cost pressures, the company maintained strong profitability:
- Gross Profit: LKR 1.063 billion. While this represents a 39% year-on-year decline from an exceptionally strong previous year, it remains substantially higher than the LKR 1.001 billion recorded in 2023/24 and significantly above the 2021/22 position.
- Profit After Tax (PAT): LKR 658 million, a 31% reduction from the previous year’s peak, but affirming continued profitability.
- Earnings Per Share (EPS): Stood at LKR 12.20.
- Dividend Per Share (DPS): Declared at LKR 4.00.
The company’s financial position also strengthened, with total assets increasing by 3% to LKR 7.17 billion and total equity growing by 10% to LKR 2.97 billion. Net assets per share improved by 10% to LKR 55.
Operational Excellence and Strategic Diversification Drive Value
Operationally, Maskeliya Plantations PLC demonstrated strong discipline. Total made tea output reached 6.4 million kg across a revenue extent of 5,352.22 hectares, yielding an average productivity rate of 1,160 kg/ha. The company achieved a healthy operational margin of LKR 200.38 per kg (Net Sale Average of LKR 1,051.27/kg against a Total Cost of Production of LKR 854.53/kg).
Highlighting its operational prowess, the report specifically recognized:
- Talawakelle Estate: Delivered exceptional financial results, generating a profit exceeding LKR 200 million for the year and accumulating over LKR 1 billion in total profit over the past five years.
- Moray Estate: Achieved over LKR 100 million in profit annually for the past four consecutive years, maintaining strong land productivity and cost control.
The company continues to enhance efficiency through modernization and strategic crop diversification:
- Crop Diversification: A significant long-term initiative involves coffee cultivation, with over 466,000 plants established across 188.3 hectares. These fields are set to reach commercial bearing stage in FY 2026/27, providing a diversified revenue stream. Pear cultivation across 8.5 hectares, managed under Good Agricultural Practices (GAP) certification, also contributes to non-traditional crop income, with produce distributed through Arpico Super Centers.
- Technological Advancements: The company is investing in drone technology for precise field spraying and implementing factory automation initiatives to streamline manufacturing processes, improve product consistency, and optimize labor productivity.
- Infrastructure Upgrades: Capital investments in factory infrastructure, such as reroofing projects at Moray Estate, ensure asset protection and operational longevity.
Pioneering Sustainability and ESG Reporting
The 2025/26 Annual Report marks Maskeliya Plantations PLC’s inaugural Integrated Annual Report, prepared in alignment with the stringent requirements of IFRS S1 and S2 (Sri Lanka Financial Reporting Standards Sustainability Disclosure Standards), GRI Universal Standards 2021, and the United Nations Sustainable Development Goals (UN SDGs). This commitment to transparency and responsible business practices is a key strategic pillar.
Key highlights of their ESG commitment include:
- Environmental Stewardship: Focus on climate resilience, GHG emission reduction (with a target of 20% reduction by 2032), water conservation (20% reduction by 2032), soil health, and biodiversity protection (100% conservation of high-value biodiversity areas by 2032). The company also champions responsible agrochemical management and a 9R circular economy approach.
- Social Responsibility: Priorities include employee wellbeing, fair wages, healthcare, occupational health and safety (target of 100% LTIFR reduction by 2032), training (15% increase in training hours), and diversity. The company aims for a 40% increase in women in management by 2032.
- Robust Governance: Strengthened ESG governance through transparent reporting, regulatory compliance (100% compliance target), responsible procurement, and zero tolerance for corruption.
In a notable move for accessibility, Maskeliya Plantations PLC has also announced the availability of a Braille version of its Integrated Annual Report upon request, demonstrating its commitment to inclusivity for all stakeholders.
Diligent Governance and Future Outlook
The company’s governance framework, overseen by a Board of Directors comprising six Non-Executive Directors (including two independent directors), ensures robust oversight. Independent assurance over the Integrated Reporting has been provided by Deloitte Partners, affirming the credibility of the reported information.
Dr. Sena Yaddehige, Chairman of Maskeliya Plantations PLC, reiterated the company’s focus on strengthening resilience, productivity, and long-term sustainability. “Sustaining this vital ecosystem and its many stakeholders is a collective responsibility for the future,” he stated, emphasizing the company’s 150-year legacy in the Sri Lankan tea industry.
The company’s strategic outlook involves continuous innovation, adaptation to evolving market and climatic conditions, and a strong emphasis on ethical business practices to create enduring value for all stakeholders.
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Disclaimer: This article is based on information publicly released by Maskeliya Plantations PLC. Investors are advised to conduct their own due diligence.
