Hayleys reports 1H pre-tax profit of Rs. 1.2 billion

Hayleys PLC has posted a pre-tax profit of Rs. 1.2 billion on a turnover of Rs. 24.8 billion for the first half of 2010-11. According to figures released to the Colombo Stock Exchange by the Blue Chip conglomerate, turnover grew by a solid 47% over the corresponding six months of last year, with significantly higher volumes in key sectors such as Hand Protection, Purification and Transportation and the consolidation of contributions from increased shareholdings in sectors such as Textiles, Leisure and Plantations.

Profit before tax for the period reviewed reflected an improvement of 11 per cent over the first half of 2009-10, despite the latter including a capital gain of Rs. 226 million. Tax expenses increased in the six months ending 30 September 2010, largely due to this reason. Consequently, profit after tax for the period at Rs. 830 million, was marginally above that of last year.

Hayleys Chairman Mohan Pandithage stated that particularly strong 1st half results were generated by Plantations, Agriculture, Transportation and Purification Products.

Plantations, which reported an operational loss of Rs. 182 million in the first half of last year, posted an operational profit of Rs. 227 million in the six months reviewed. Turnover improved by 126 per cent to Rs. 2.3 billion.

Agriculture, excluding plantations, improved its contribution to operational profit by 44.8 per cent to Rs. 338 million.

The Transportation sector generated a robust 117 per cent growth in operational profit, from Rs. 116 million in the first half of last year to Rs. 253 million in the six months reviewed.

Purification Products contributed Rs. 391 million to operational profit and Rs. 3 billion to turnover.

Noteworthy contributions to turnover also came from Hand Protection, Fibre and Textiles. However in all these sectors profit eroded due to the high cost of raw materials.

Pandithage also reported the acquisition of 95 per cent equity in Alutec Anodizing and Machine Tools (Private) Limited (Alumex Group) for Rs. 2.18 billion in the current quarter. The Alumex Group is the market leader in the aluminum extrusions industry in which the company has a market share of nearly 55 per cent. A worthwhile contribution to both turnover and profitability is expected from this activity, he said.

Established in 1878 and rated a Business-to-Business (B2B) Superbrand among Sri Lanka’s diversified conglomerates; the Hayleys Group employs more than 30,000 people, and accounts for 2.45 per cent of Sri Lanka’s export income.

The Board of Directors of Hayleys PLC comprises A. M. Pandithage (Chairman and Chief Executive), L. K. B. Godamunne, J. D. Bandaranayake, M. R. Zaheed, A. M. Senaratna, J. A. G. Anandarajah, T. L. F. Jayasekera, K. D. D. Perera, W. D. N. H. Perera, S. C. Ganegoda and H. S. R. Kariyawasan.

Plantations, which reported an operational loss of Rs. 182 million in the first half of last year, posted an operational profit of Rs. 227 million in the six months reviewed. Turnover improved by 126 per cent to Rs. 2.3 billion.

Agriculture, excluding plantations, improved its contribution to operational profit by 44.8 per cent to Rs. 338 million.

The Transportation sector generated a robust 117 per cent growth in operational profit, from Rs. 116 million in the first half of last year to Rs. 253 million in the six months reviewed.

Purification Products contributed Rs. 391 million to operational profit and Rs. 3 billion to turnover.