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Robust
1st quarter revenue and profit growth at Hayleys
Blue
chip reports significantly improved performance with turnover
up 20% to Rs 7.8 bn & post tax profit up 278% to Rs 257
mn
Strong
performances from Plantations, Transportation and Agri Inputs
augmented by gains from investments have enabled Hayleys PLC
to improve Group performance significantly in the first quarter
of 2008-09, despite the continuing impact of inflation on
a major part of its business.
According to results released last week, the Superbrand conglomerate’s
profit for the period grew 278 per cent to Rs 257 million
in the three months ending June 30, 2008. Profit attributable
to equity holders of the company increased to Rs 108 million
from a loss of Rs 60 million in the corresponding quarter
of the previous year.
Group turnover in the three months reviewed topped Rs 7.8
billion, a growth of 20 per cent, while profit before tax
and discontinued operations improved by 89 per cent to Rs
293 million.
Commenting on the performance reported, Hayleys Group Chairman
N. G. Wickremeratne said: “The Plantations sector was
the highest contributor to profits, helped by a continued
strong market for tea and rubber. This was followed by the
Transportation sector, which also exceeded expectations. The
Group’s business in Agri Inputs recorded a creditable
result as well.”
Wickremeratne said the Global Markets & Manufacturing
sector in general had performed below expectations due to
a time lag in passing through steeply rising input costs and
to disruptions in operations due to weather and other factors.
In this sector the performances of Purification Products and
Textiles were satisfactory, but the Hand Protection sector
continued to be set back by losses from DPL (Thailand), albeit
at a reduced level, he said. Fibre also performed below desired
levels.
The overall Group result was augmented by the gain from divestment
of the Group’s holding in Diesel & Motor Engineering
(DIMO) during the review period, Wickremeratne disclosed.
The Group’s exit from Kinetics and closure of Consumer
Durables are nearing completion, he said.
However, a major part of the Group’s business which is
in export manufacture and domestic production of Agri products
continues to be affected by inflation, the effect of which
is not countered by any depreciation of the Sri Lanka Rupee,
Wickremeratne cautioned. He said several measures had been
taken to offset this negative impact through productivity
improvements and marketing efforts, and these are expected
to deliver results in the ensuing quarters.
Among the major contributors to Hayleys’ performance
in the quarter under review were Hand Protection with Rs 2,265
million to turnover and Rs 62 million to operating profit,
Purification Products with Rs 1,054 million to turnover and
Rs 82 million to operating profit, Plantations with Rs 666
million to turnover and Rs 142 million to operating profit
and Transportation with Rs 954 million to turnover and Rs
120 million to operating profit.
According to published figures, Hayleys PLC’s basic earnings
per share for the period reviewed was Rs 1.43, while earnings
per share from continuing operations were Rs 1.97.
Rated a Business-to-Business (B2B) Superbrand among Sri Lanka’s
diversified conglomerates, the Hayleys Group employs more
than 35,000 people, and accounts for 2.6 per cent of Sri Lanka’s
export income
The Board of Directors of Hayleys PLC comprises Messrs N.
G. Wickremeratne (Chairman), A. M. Pandithage (Deputy Chairman),
R. A. Ebell, L. K. B. Godamunne, P. S. P. S. Perera, J. D.
Bandaranayake, A. Hettiarachchy, M. R. Zaheed, A. M. Senaratna,
J. A. G. Anandarajah, T. L. F. Jayasekera and K. D. D. Perera.
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