Colombo, 03 September 2026 – BPPL Holdings PLC (CSE: BPPL) today announced an errata to its Annual Report for the financial year 2025/2026, specifically addressing clarifications within the Management Discussion & Analysis section. This update aims to provide greater clarity on the company’s financial performance, particularly concerning the treatment of a hedging reserve write-off and its impact on reported figures.
Revised Revenue Figures for FY2025/26
The primary area of clarification revolves around the Group’s revenue reporting. As per the errata, BPPL Holdings PLC recorded a consolidated revenue of Rs. 5.6 billion for the year ended 31st March 2026, marking a 2% increase from Rs. 5.5 billion in the previous financial year. However, the document highlights that the previous year’s consolidated revenue (FY2024/25) included a Rs. 369 million charge related to a hedging reserve balance, as per Sri Lankan Accounting Standards.
When this one-off hedging reserve write-off is excluded from the previous year’s figures, the Group revenue of Rs. 5.6 billion for the year under review (FY2025/26) represents a 5% drop compared to the adjusted revenue of FY2024/25. This distinction is crucial for a more accurate year-on-year comparison of operational revenue trends. The updated report also illustrates the movement in consolidated revenues over the last five financial years, differentiating between figures inclusive and exclusive of this one-off adjustment.
Profitability and Strategic Initiatives
The errata further refines the understanding of the Group’s profitability. An EBITDA of Rs. 902 million was reported for FY2025/26 from operations, compared to Rs. 569 million in the previous year. However, the EBITDA for the previous financial year, after excluding the hedge reserve write-off, stood at Rs. 992 million. The document attributes the drop in current year EBITDA (when compared to the adjusted previous year) to lower revenue during the year.
Despite these adjustments, the Group has made strides in strategic areas. The transition of the customer base of Ravi Revenue Industries Limited provides direct access to European and Middle Eastern markets, diversifying geographical risks and significantly increasing monthly volumes of brush exports. While revenues from the brush segment were impacted by US tariffs, the company notes an improvement from the latter part of FY2025/26. Operational level initiatives are actively in place to enhance productivity and efficiencies, aiming to safeguard margins and bolster competitiveness.
Other Key Financial Highlights
- Finance Expenses: Total finance expenses rose to Rs. 266 million from Rs. 223 million in the previous year, primarily due to Rs. 95 million in exchange valuation losses from US Dollar denominated borrowings caused by the depreciation of the Sri Lankan Rupee. Interest expenses, however, decreased to Rs. 171 million from Rs. 229 million, reflecting successful long-term debt repayments, improved working capital management, and lower prevailing interest rates.
- Dividends: The Board of Directors declared two interim dividends of 25 cents each per share, totaling Rs. 153 million, paid out of cash profits generated in the previous year.
- Cash & Capital: A robust Rs. 934 million was generated from operations before interest and taxes. The Group achieved a net cash flow of Rs. 680 million after interest and income tax, allowing for investments in fixed assets (Rs. 164 million) and financial assets (Rs. 82 million).
- Debt to Equity: Prudent utilization of surplus cash enabled the settlement of parts of both long-term and short-term loans, leading to a significant reduction in the Group’s debt-to-equity ratio from 58% to 47% at the end of FY2025/26.
The errata serves to ensure that all stakeholders have the most accurate and transparent view of BPPL Holdings PLC’s financial performance and strategic direction for the fiscal year 2025/2026.
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