New growth sectors cushion Hayleys

Wednesday, 12 February 2014 00:21 - - {{hitsCtrl.values.hits}}

First nine months Group turnover up 9% to Rs. 60.3 b; Gross profit up 12% to Rs. 14 b and operating profit up 8% to Rs. 5.2 b
After tax profit down 2% to Rs. 2.6 b

Hayleys PLC, one of Sri Lanka’s leading conglomerates, recorded strong performance in new growth sectors such as Leisure and Energy in the first nine months of 2013/14. The Group recorded steady revenue growth of 9% in the first nine months of the year. Gross profit rose by 12% to Rs. 14 billion, up from Rs. 12.4 billion in 9M 2012/13, whilst Operating profit was Rs. 5.2 billion, up from Rs. 4.8 billion. Post-tax profit was down by 2% to Rs. 2.6 billion. Net profit atributable to equityholders of the parent was Rs. 1.22 billion in the first nine

months of FY14, as opposed to Rs. 1.3 billion a year earlier. “The Group sustained revenue growth across the board, with a majority of industry segments demonstrating a commendable increase in revenue. Businesses in the Global Markets and Manufacturing segment, one of the core contributors to Group profitability, underwent challenging operating conditions,” Hayleys said in a statement. The Purification sector posted an operating profit of Rs. 899 million for the nine months ended 31 December 2013. The Hand Protection Sector recorded revenue of Rs. 10.2 billion, with an operating profit of Rs. 773 million, down from Rs. 1.1 billion for the reporting period in the previous financial year, due to an impact of closure of one of its latex glove manufacturing units. Construction Materials sector recorded a commendable rise in profitability as PBIT grew by 19% over the corresponding period in 2012/13. The Textiles segment witnessed an improvement in operating profits, subsequent to significant improvements to revenue, which grew by 28% from the corresponding period in the previous year. The Agriculture and Plantations sector recorded creditable performance despite a wage hike for tea plantations earlier in the year. Transportation and Logistics sustained growth during the nine months with operating profit rising by 11%, as did Consumer Products sector, which recorded growth in turnover and profitability despite a weak market scenario. A strong performance by the Power and Energy sector was spurred by improved profitability in renewable energy. A significant improvement in profitability of the Leisure and Aviation sector was evident for the reporting period with operating profit rising to Rs. 578 million. A strong contribution from the operating activities of The Kingsbury Hotel supported growth in the sector. Speaking on the Group’s performance over the reporting nine months of the financial year, Hayleys PLC Chairman and Chief Executive Mohan Pandithage noted: “We are encouraged by the strong performance from the sectors in which we have made significant investments in recent years.” The Board of Directors of Hayleys PLC comprises Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Deputy Chairman), Rizvi Zaheed, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Dr. Mahesha Ranasoma, Mangala Goonatileke, Lalin Samarawickrama, Ruwan Waidyaratne, Shyamalie Weerasooriya (alternate to Dhammika Perera) and Mohamed Jamaldeen.