Hayleys 3Q profits up 8% to Rs. 1.1 b

Wednesday, 15 February 2017 09:41 - - {{hitsCtrl.values.hits}}

Leading Sri Lankan conglomerate Hayleys Plc’s profits after tax have risen by 8% Year-on-Year (YoY) to reach Rs. 1.1 billion during the quarter ended 31 December 2016 (3Q16).

Revenue during the quarter increased by a sharp 27% YoY up to Rs. 30 billion buoyed by strong performances across in the group’s Agriculture, Construction Materials, Transportation and Logistics, and Hand Protection segments, while operating profits expanded by 24% YoY, reflecting strong growth in core operating activities.

For the nine-month period profit after tax (PAT) stood at Rs. 2.7 billion, reflecting an 11% reduction from the previous year.

In a statement, Hayleys said strong performances were recorded across the group’s Agriculture sector with PAT in the segment increased from Rs. 543 million to Rs. 667 million. Hayleys’ Hand Protection business posted impressive turnover growth, increasing rapidly from Rs. 9 billion to Rs. 10.9 billion while the segment’s profits increased to Rs. 390 million, as compared with a previous Rs. 225 million in 2015. The group’s Construction Materials sector performed well to record a substantial growth in profits, reaching Rs. 491 million.

The continued troubles in the Plantation sector, as experienced across the industry, acted as a drag on profitability for the group during the nine-month period while the finance cost increased mainly due to an increase in rates and the strategic investments carried out by the group.

“The Hayleys Group remains strongly focused on growth, innovation and prosperity within the Sri Lankan economy. During the period in review, the group continued its pioneering efforts to generate new opportunities for growth and establish new benchmarks in terms of innovation and value addition to local raw materials.”

“Similarly, the group’s concerted emphasis on the development of cutting-edge technologies adapted to meet local requirements also yielded significant results, as evidenced by our recent unveiling of Sri Lanka’s largest capacity 10 MW solar power plant, and it is encouraging to note that our efforts have not gone unrecognised with Hayleys being adjudged as Sri Lanka’s Best Corporate Citizen during the period in review. Moving forward into the final quarter of the year we anticipate continued growth across all sectors, expanding on the strong momentum built up over the last two quarters,” Hayleys PLC Chairman Mohan Pandithage stated.

The Board of Directors of Hayleys Plc comprises Chairman and Chief Executive Mohan Pandithage, Co-Chairman Dhammika Perera, Rizvi Zaheed, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Dr. Mahesha Ranasoma, Lalin Samarawickrama, Ruwan Waidyaratne, Hisham Jamaldeen and Aravinda Perera.