Despite challenging market conditions, the company has managed to maintain a positive trend in the first quarter of FY24.
Undoubtedly, the past quarter has presented several challenges for their company.
A series of factors, including the significant increase in corporate tax, the introduction of VAT and SSCL in previous quarters, and the unprecedented rise in personal income tax, have all impacted their revenue streams.
One of their major revenue streams, the middle class, has been badly affected by the significant increase in personal income tax and prevailing inflation.
For decades, this segment has been a key contributor, generating approximately one-fourth of their total revenue.
However, the recent hike in personal income tax has significantly reduced the spending power of this crucial demographic.
As a result, they have witnessed a decline in their consumption levels and, consequently, a notable decline in their revenue from this segment.
While the past quarter has posed significant challenges for the company, it is through calculated and strategic responses that they were able to weather these obstacles and emerge stronger in the face of adversity.
As their efforts paid off, as they witnessed an increase in revenue by 7%, gross profit by 21%, operating profit by 126%, and net profit by 125% compared immediate quarter ending 31.03.2023.
Furthermore, when compared to the first quarter of FY 23, they experienced a 9% increase in revenue and a 2% increase in gross profit, with only a minor deduction of 1% in net profits.
This positive trend is an encouraging sign for the future of their company.
During this period, they also expanded their operations by setting up a pest management business in London, marking their entry into the United Kingdom market.
The rigorous standards and compliance requirements in the UK will be applied to their Sri Lankan operations, enhancing their pest management standards, and creating more value for their customers, employees, and shareholders.
Notably, they celebrated their 25th year in business and 15 years as an ISO 9001-certified pest management company.
They are also proud to hold certifications in ISO 14001 environmental management system, ISO 45001 health and safety management system, and ISO 22000 food safety management system.
These certifications reflect their commitment to excellence and our dedication to delivering high-quality services.
In addition to their numerous achievements in the field of pest management, they are proud to announce that they have become a member of the esteemed Global Pest Management Coalition (GPMC), based in the United States.
This membership further solidifies their position as a leader and expert in the industry.
The mission of the GPMC is to provide a unified global platform that promotes the value of pest management in ensuring the protection of health, homes, food, and businesses.
By being a part of the GPMC, they gain access to a vast network of industry leaders and influencers, allowing them to stay at the forefront of technological advancements, regulatory developments, and emerging trends.
Their executives have also been invited to speak at international conferences and events, showcasing their expertise and thought leadership.
Looking ahead, they are embarking on a journey of digital transformation powered by artificial intelligence.
This transformation will revolutionize their processes, improve customer connectivity, optimize sales and technician functions, and enable us to deliver more efficient and effective services.
They are committed to being at the forefront of integrating AI within their industry in Sri Lanka and globally, while ensuring they mitigate any negatives and enhance the positives for people and the planet.
Photo Caption Chairman Chaaminda Ratnayake and Managing Director Marlan Ferreira