Thursday Nov 14, 2024
Thursday Nov 14, 2024
Friday, 9 August 2019 00:25 - - {{hitsCtrl.values.hits}}
Hayleys PLC, Sri Lanka’s most diversified conglomerate, has demonstrated resilience in challenging conditions to record an improvement in turnover and operating performance during the first quarter of the 2019/20 financial year.
The Group’s turnover grew by 4% to Rs. 52.6 billion during the period, upheld mainly by the top line growth in Hand Protection (+10%), Purification (+24%) and Textiles (+41%) sectors . Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) also increased by 5% to Rs. 4.6 billion during the period while consolidated operating profit grew by 4% to Rs. 3.3 billion.
High finance cost resulted in decline of the consolidated pre-tax profit to Rs. 285 million.
In terms of segmental operating performance, Textiles (+327%), Purification (+84%) and Eco Solutions (+32%) were the most significant contributors to profit growth. Consumer & Retail, Transportation & Logistics, Power & Energy, Hand Protection and Agriculture sectors have also remained major contributors to the consolidated operating profit as in the previous periods. The performance of the Leisure Sector was significantly impacted by the 21 April terrorist attack which directly affected The Kingsbury Hotel and the subsequent decline in tourist arrivals into Sri Lanka due to adverse travel advisories. Resultantly, the Leisure sector generated an operating loss of Rs. 364 million, negatively impacting consolidated profitability. The Construction Materials sector recorded a 51% decline in operating profit reflecting the slower than expected recovery in the country’s construction sector. Meanwhile, subdued consumer sentiments affected the performance of the Group’s Consumer & Retail sector which saw operating profits declining by 13% during the quarter.
“The diversity in the Group’s operations continue to enable Hayleys to withstand challenges stemming from the operating landscape,” said Hayleys Chairman and Chief Executive Mohan Pandithage. Further, he stated: “We are encouraged by the faster than expected recovery of the country’s tourism sector and are hopeful of a strong Winter season this year. We also anticipate interest rates to decline over the short-to-medium term, supporting earnings expansion.”
The Board of Directors of Hayleys PLC comprises Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Ruwan Waidyaratne, Hisham Jamaldeen, Aravinda Perera, Noel Joseph, Jayanthi Dharmasena and Rohan Karr.
