Tropical Turnaround or Tricky Tides? Beruwala Resorts PLC’s 2024/25 Report Unveiled!
Let’s crack open this report and see what’s brewing at BERU!
📊 Key Numbers in Human Terms (Group)
| Metric | 2025 (Group) | 2024 (Group) | Change |
|---|---|---|---|
| Revenue | Rs 841.3 Mn | Rs 722.5 Mn | +16.4% 📈 |
| Profit Before Tax | Rs 138.6 Mn | Rs 77.6 Mn | +78.6% 🚀 |
| Profit After Tax | Rs 93.0 Mn | Rs 177.2 Mn | -47.5% 📉 |
| Occupancy Rate | 84% | 70% | +14pp 🏨 |
| Earnings Per Share | Rs 0.14 | Rs 0.30 | -53.3% |
| Total Debt | Rs 391.9 Mn | Rs 434.9 Mn | -10.1% ⬇️ |
| Cash & Equivalents | Rs 20.3 Mn | Rs 10.1 Mn | +101.0% 💰 |
| Dividend Per Share | Rs 0.10 (Proposed) | Rs 0.00 | First Dividend! 💰 |
🚀 What's Pushing Forward
- ✈️Tourism’s Strong Comeback: 38.3% jump in tourist arrivals; The Palms occupancy soared from 70% to 84%.
- ✨Smart Spending on Upgrades: Over Rs 100mn invested in refurbishments, leading to improved guest satisfaction & ADRs.
- ✅Financial House in Order: Reduced total debt by 10% and moved retained earnings from negative to positive.
⚠️ Potential Pitfalls
- 💸The "Tax Surprise" on Profits: PAT dropped due to normalization of tax impact (last year had large tax reversal).
- 💳Still Tight on Short-Term Cash: Current liabilities exceeded current assets by over Rs 250mn, requiring careful management.
- 🌪️External Headwinds: Ongoing economic challenges, regional competition, talent migration, and currency risks.
🎯 Future Performance Scenarios (12-18 months)
💭 Colombo Stock Whisperer's Bottom Line
Beruwala Resorts PLC has certainly shown strong "podi kolla" (little boy) spirit, bouncing back remarkably from the challenges. The operational performance is solid, with a packed house at The Palms and smart investments. The dividend payout is a welcome sign of shareholder appreciation. However, the significant impact of normal income tax on the bottom line reminds us that not all headline numbers tell the full story. Investors should focus on the underlying operational growth (like the Profit Before Tax increase) and the improved balance sheet, rather than being spooked by the net profit dip driven by accounting for taxes. If Sri Lanka's tourism keeps shining bright like a "sunflower" and BERU continues its disciplined approach to managing its "goda saha polawa" (land and property) and people, this stock has potential. Just remember, "kannum kaalum" (eyes and feet) ready for those market swings!