Hayleys profits down due to Rs. 459 m tea and rubber plantations loss

Wednesday, 9 November 2016 01:23 - - {{hitsCtrl.values.hits}}

Leading diversified conglomerate, Hayleys PLC recorded a sharp increase of 18% Year-on-Year (YOY) increase in revenue, with growth in Construction, Agriculture, and Hand Protection sectors supporting the Group to post revenue in excess of Rs. 52 billion by the end of the first half of 2016 (1H16).

Profit Before Tax (PBT) during the period stood at Rs. 2.5 billion with the Transportation and Logistics sector achieved a turnover of Rs. 11 billion against Rs. 7.3 billion in 1H15. The Group’s Construction Materials segment recording revenue of Rs. 1.9 billion, 01-m improving on a previous Rs. 1.7 billion in 1H15.

Notably, revenue in the Group’s Agriculture sector recorded impressive growth, rising to Rs. 6.5 billion by the end of the half, against Rs. 4.8 billion in the corresponding period of 2015. Similarly, the Group’s Hand Protection segment recorded revenue of Rs. 7 billion over a previous Rs. 6 billion.

However, as was the case across the Sri Lankan plantation sector, crop losses due to adverse weather conditions and a Government ban on weedicides resulted in the Group’s Plantation segment’s revenue shrinking from Rs. 4.7 billion down to Rs. 4.4 billion during the period in review, ultimately leading to a loss of Rs. 459 million during 1H16.

Commenting on the performance and outlook of the Group, Hayleys PLC Chairman Mohan Pandithage stated: “It has been a challenging but rewarding first half for Hayleys. While the systemic issues in the Sri Lankan plantation sector did have a negative effect on the bottom line, these effects were largely mitigated by strong performances across the Hayleys Group – particularly with regard to the Hand protection and Construction Material segments.

“Technology, innovation and sustainability continue serve as a catalyst for new growth opportunities within the Hayleys Group. The excellent work being carried out though the Puritas team, both commercially, and through the Puritas Sath Diyawara team who spearheaded our corporate CSR initiative, are an excellent example of this spirit of sustainable innovation in action. Moving forward we will continue to leverage the considerable strength and resources of the Hayleys Group to open up new avenues of growth.”

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