Colombo, Sri Lanka – 14 September 2026 – TESS AGRO PLC (CSE: TESS) has announced a significant turnaround, reporting a return to profitability and a robust strengthening of its balance sheet for the financial year ended 31st March 2026. The company’s latest Annual Report, filed with the Colombo Stock Exchange (CSE) today, details a year marked by strategic capital restructuring, fair value gains, and continued investment in sustainable operations despite a challenging revenue environment.
Financial Performance Highlights a Strong Turnaround
The Annual Report reveals a noteworthy shift from a restated loss in the prior financial year to a commendable profit. This recovery was primarily driven by strong results from operating activities, continued fair value gains on its investment property portfolio, and a substantial revaluation surplus on property, plant and equipment. Critically, Tess Agro also achieved a marked reduction in finance costs, improving its interest cover significantly from 0.4 times to 8.0 times.
Key financial figures include:
- Revenue for the year stood at Rs. 24.58 million (2025: Rs. 41.38 million), reflecting continued pressure on trading volumes.
- Despite revenue contraction, results from operating activities rose by 79% to Rs. 37.30 million (2025: Rs. 20.81 million).
- A significant fair value gain on investment property of Rs. 68.70 million (2025: Rs. 32.04 million) contributed to the positive outcome.
- Profit before tax was reported at Rs. 34.11 million, a substantial recovery from a restated loss of Rs. 24.25 million in the previous year.
- Net profit for the year reached Rs. 16.44 million (2025: restated loss of Rs. 28.48 million), translating to earnings per share of Rs. 0.022 (2025: restated loss per share of Rs. 0.038).
- Total comprehensive income for the year amounted to Rs. 66.06 million, a significant improvement from the prior year’s restated loss of Rs. 27.88 million.
Strategic Capital Restructuring Enhances Balance Sheet
A pivotal development for TESS AGRO PLC during the year was the execution of a capital reduction exercise, approximately Rs. 408.1 million, which was strategically applied to eliminate a corresponding portion of the company’s accumulated losses. This initiative significantly bolstered retained earnings, improving the deficit to Rs. 79.63 million (2025: deficit of Rs. 504.14 million).
As a result, total equity strengthened by 30% to Rs. 283.14 million (2025: Rs. 217.08 million), and net assets per share increased to Rs. 0.381 from Rs. 0.292. The Board views this restructuring as crucial for presenting a more realistic financial position and paving the way for future dividend considerations. Gearing also improved, with the debt-to-equity ratio declining to 2.11 times from 2.97 times. However, the current ratio saw a decline to 0.94 times, falling below 1.0 times, largely due to the deployment of prior-year funding into capital investments and debt repayment.
Operational Focus and Sustainability Initiatives
Operationally, the company’s Agro Tin Tech manufacturing facility completed its first full year of steady-state commercial production, focusing on consolidating its market position, refining its customer base, and strengthening quality and production processes. This aligns with Tess Agro’s commitment to sustainable, locally-manufactured packaging solutions for various industries, including food and beverage.
Tess Agro’s commitment to sustainability remains a core strategic pillar. The solar-powered tin can factory continues to reduce reliance on grid electricity. Furthermore, the company successfully commissioned a 360 kW solar installation at Kerawalapitiya, bringing total commissioned capacity to 450 kW. A further 200 kW installation is currently being commissioned, which will bring the total solar generation capacity to approximately 650 kW upon completion. These efforts have already resulted in a combined cumulative reduction of approximately 515 tonnes of CO₂ emissions.
Future Outlook and Leadership
Looking ahead, the Board is encouraged by the return to profitability and strengthened capital base. The focus will be on rebuilding revenue momentum in core export and manufacturing operations, maintaining cost discipline, improving short-term liquidity, and expanding its Contract Packing Centre to provide additional revenue streams. The company’s vision is “To achieve the country’s best practice in the efficient and effective provision of service to Sri Lanka’s Agricultural and Fisheries Sector,” supported by its mission “To perform as a vital link to our rural economy and exploit state of the art technology to ensure consistency and quality of products & services.”
The Board of Directors, led by Chairman/CEO Mr. Dilshan Fernando, emphasized their commitment to upholding the highest standards of corporate governance, transparency, and accountability, as detailed in the comprehensive report including the Chairman’s Report and Management Discussion Analysis. The 33rd Annual General Meeting will be held virtually on Tuesday, 13th October 2026, to consider and approve the annual report and financial statements, among other items.
TESS AGRO PLC’s registered office is located at No. 87, New Nuge Road, Kelaniya, Sri Lanka. For further inquiries, contact +94 11 2269859 or email info@tess.lk, or visit www.tess.lk.
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