COLOMBO – 31 August 2026 – Richard Pieris Exports PLC (RPE), a prominent player in Sri Lanka’s export sector, today announced its Annual Report for the financial year ended 31st March 2026, detailing a period of strategic resilience and significant operational improvements amidst a challenging global economic landscape. The report, filed under CSE Announcements, highlights a remarkable 90% reduction in the Group’s pre-tax loss, demonstrating effective management strategies against external pressures.
Financial Performance Overview: A Path Towards Recovery
For the financial year 2025/26, the Richard Pieris Exports PLC Group reported a turnover of Rs. 6,021 million, a 17% decrease from the previous year’s Rs. 7,251 million. This decline was primarily attributed to subdued global demand and the impact of international trade policies.
Despite the revenue contraction, the Group achieved a notable turnaround in its profitability metrics. The loss before taxation was significantly reduced by 90%, from Rs. (251.22) million in FY 2024/25 to Rs. (24.46) million in the current year. Furthermore, profit attributable to the ordinary shareholders of Richard Pieris Exports PLC saw a positive increase of 13%, reaching Rs. 40.38 million, compared to Rs. 35.62 million in the prior year. Basic Earnings Per Share (EPS) for the Group improved to Rs. 3.62 from Rs. 3.19.
The Company (Richard Pieris Exports PLC standalone) recorded a turnover of Rs. 1,404 million (down 35%) and a profit before taxation of Rs. 98.17 million (down 71%). The Company’s EPS stood at Rs. 8.56. Shareholders will receive an interim dividend of Rs. 9.00 per share, reflecting a 25% reduction from the previous year.
Navigating a Complex Global Economic Environment
The reporting period was characterized by a confluence of global challenges. The Chairman’s Statement outlined difficulties including fluctuating raw material prices, adverse currency movements, and increasingly stringent sustainability and regulatory requirements across international markets. A key development was the introduction of tariffs in the United States, which severely impacted sales volumes and pricing for several export product categories. The escalation of the Middle East conflict towards the latter part of the financial year also contributed to supply chain disruptions and higher input costs.
Domestically, Sri Lanka continued its economic recovery, benefiting from moderating inflation and a more stable interest rate environment. However, a stronger Sri Lankan Rupee presented challenges for export realisations.
Strategic Resilience and Market Diversification
In response to these headwinds, Richard Pieris Exports PLC adopted a disciplined approach centered on cost management, operational efficiency, and market diversification. This strategy proved crucial in mitigating external pressures:
- Asia-Pacific Growth: The Asia-Pacific region emerged as a key growth driver. The Hard Rubber Segment saw an impressive 94% increase in export volumes to Asia-Pacific, while the Latex Based Segment’s shipments to the region surged by 75%, significantly offsetting weaker demand from traditional markets in the US and Europe.
- Product Diversification: Sales of crutch tips within the Hard Rubber Segment increased by 200%. The continuous sheeting product line also gained substantial traction, recording a remarkable 282% growth.
- Operational Efficiency: Improved cost management, lower freight costs due to reduced CIF shipments, and enhanced operational efficiencies contributed to a better financial performance, particularly for the Richard Pieris Natural Foams Limited (RPNF) subsidiary.
- Biomass Energy Investment: The Group’s continued investment in biomass energy proved vital, reducing dependence on conventional fuel sources and improving overall production efficiency, generating both environmental and economic benefits.
Segmental Performance Highlights
- Hard Rubber Segment (RPE): While overall revenue contracted due to US tariffs and softer European demand for jar sealing rings, the segment remained profitable, underpinned by disciplined cost management and strategic market penetration in Asia-Pacific.
- Latex Based Segment (RPNF): This segment demonstrated greater resilience, with revenue declining modestly. Strong growth in Asia-Pacific markets and a 30% increase in domestic sales, coupled with comprehensive cost optimization, led to a substantial reduction in operating losses.
- Micro Minerals (Pvt) Ltd: The minerals segment continued its stable and profitable operations, providing essential raw material support to the Group’s manufacturing activities, reinforcing supply chain reliability.
Commitment to Sustainability and Governance
Sustainability remains a core tenet of RPE’s long-term strategy. The Group focused on enhancing operational standards to meet evolving customer expectations and global regulatory requirements, including preparedness for the European Union Deforestation Regulation (EUDR). Investments in biomass energy, improved energy intensity, and targeted social initiatives underscore RPE’s commitment to balancing economic performance with environmental and social responsibility.
The Annual Report also detailed robust corporate governance practices, with strict adherence to CSE Listing Rules and a comprehensive Board committee structure overseeing Audit, Remuneration, Nominations & Governance, and Related Party Transactions. Notably, several long-serving directors, including Dr. Sena Yaddehige (80), Dr. L.M.K. Tillekeratne (79), Mr. Viville P. Perera (78), and Dr. Lawrence Perera (71), were re-appointed to the Board in terms of Section 211 of the Companies Act, acknowledging their invaluable experience and continued contribution despite exceeding the ordinary age limit.
Outlook: Cautious Optimism Amidst Continued Focus
Looking ahead, Richard Pieris Exports PLC maintains cautious optimism. While global economic uncertainty is expected to persist, improving macroeconomic conditions in Sri Lanka and gradual recovery in several export markets offer a more favourable operating environment. The Group will continue to prioritize operational efficiency, prudent cost management, market expansion, and investment in innovation to support sustainable long-term growth and deliver enduring value to its stakeholders.
Source: Read original document
