Colombo, Sri Lanka – 01 September 2026 – Renuka Foods PLC (CSE: COCO), a prominent Sri Lankan diversified food and beverage conglomerate, has announced a robust financial performance for the year ended 31st March 2026. The company reported a significant increase in turnover to LKR 18 billion, a notable jump from LKR 13.7 billion in the previous financial year, coupled with a remarkable return to profitability.
The latest Annual Report, released on 31st August 2026, highlights the Group’s resilience amidst challenging local and global economic landscapes, underscoring strategic growth in both its Agri Food Exports and Consumer Brands segments.
Financial Highlights: A Return to Strong Profitability
Renuka Foods PLC’s financial statements reveal a substantial reversal of fortunes. Key figures from the report include:
- Revenue: Group consolidated turnover reached LKR 18,036 million, up from LKR 13,767 million in the previous year.
- Gross Profit: Gross profit surged to LKR 3,310 million, a significant improvement from LKR 1,863 million reported in FY2025.
- Net Profit: The Group recorded a net profit of LKR 669 million for the year, a strong rebound from a loss of LKR 377 million in FY2025.
- Earnings Per Share (EPS): Basic EPS for the Group stood at LKR 1.62, compared to a loss of LKR 0.97 in the prior year, reflecting enhanced shareholder value.
The Chairman’s Review attributed this growth to strategic initiatives, market diversification, and cost-saving measures implemented across the Group’s diverse portfolio.
Dynamic Segmental Performance Powers Growth
Both core business segments demonstrated strong operational gains:
Agri Food Exports:
- Export performance was a significant driver, with revenues increasing from LKR 6.27 billion to LKR 9.75 billion.
- Key markets such as Germany, Austria, the Netherlands, France, and the UAE recorded robust double-digit growth.
- The segment saw strong momentum in bulk-format lines and a 38% increase in Coconut Milk in Tetra sales, signaling a shift towards higher-value products.
Consumer Brands:
- The Dairy business expanded its outlet reach to 35,000, up from 25,000, solidifying its position as the 7th leading dairy brand in the market.
- Successful launches included the Cheddar Cheese range and an expansion of the Extruded Snacks category with the “Cheesy Ball” range under the popular Mr. Pop brand.
- Strategic cost-saving initiatives were also effectively deployed, contributing to margin resilience.
Navigating Economic Headwinds and Future Outlook
The Group’s performance comes against a backdrop of complex economic conditions. The Sri Lankan economy showed an estimated 5.0% growth in CY2025, buoyed by tourism and stronger tax revenues. However, challenges such as Cyclone Ditwah in November 2025 and escalating Middle East conflicts impacted supply chains and global freight costs.
The Management Discussion and Analysis detailed how Renuka Foods proactively tackled these operational difficulties through effective working capital and capital management strategies. The company remains committed to optimizing operational efficiency and financial performance, adapting to the changing landscape to position itself for long-term success.
Commitment to Governance and Sustainability
Renuka Foods PLC affirmed its adherence to the highest standards of corporate governance, in line with CSE Listing Rules and the Code of Best Practice issued by the Institute of Chartered Accountants of Sri Lanka. The Annual Report details the effective functioning of the Board, Audit, Related Party Transactions Review, Remuneration, and Nomination & Governance Committees.
Sustainability remains a cornerstone of the Group’s philosophy. Its plantations operate on sustainable organic agriculture principles, promoting biodiversity and environmental stewardship. The extensive outgrower network, comprising over 7,000 farmer families, ensures a consistent supply of high-quality raw materials while contributing significantly to rural livelihoods.
Proposed Dividend and Annual General Meeting
The Board of Directors has recommended a final scrip dividend of LKR 0.09 per voting and non-voting share, and a cash dividend of LKR 0.10 per voting and non-voting share for the financial year ended 31st March 2026. These are subject to shareholder and other necessary approvals at the upcoming 36th Annual General Meeting (AGM).
The AGM will be held virtually on Thursday, 24th September 2026, at 3:30 p.m. Shareholders will also consider the re-election of Mr. R.F.N. Jayasooriya and Mr. V. Sanmugam as Directors, and the re-appointment of Dr. S.R. Rajiyah and Mrs. I.R. Rajiyah, both over seventy years of age, recognizing their invaluable contribution.
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