Hayleys triumphs in FY23 with highest revenue and pre-tax profit

Tuesday, 23 May 2023 00:00 - - {{hitsCtrl.values.hits}}

Amidst challenges ups Group revenue by 44% to Rs. 487.4 b; pre-tax profit by 20% to Rs. 42.75 b
4Q profit dips due to sharp depreciation and higher taxes
Group tax increase of 98% to Rs. 15 b sees post-tax profit down by 2% to Rs. 27.6 b in FY23; bottom line down by 10% to Rs. 16.3 b
Net finance cost up from Rs. 2 b to Rs. 19 b in FY23

Sri Lanka’s most diversified blue chip Hayleys PLC has achieved its highest ever revenue and pre-tax profit in the financial year ended 31 March 2023 despite a challenging environment.

Group revenue rose by 44% to Rs. 487.4 billion in FY23 whilst pre-tax profit grew by 20% to Rs. 42.75 billion as per provisional results released yesterday.

Robust revenue increase was supported by strong growth from transportation and logistics, purification and textiles sectors.

Consolidated Operating Profit grew by 82% to Rs. 61.07 billion with transportation and logistics, others, purification, consumer & retail and agriculture sectors emerging as the largest contributors. Net finance cost shot up to Rs. 19 billion from Rs. 2 billion in FY22.

Profit After Tax however declined by 2% to Rs. 27.67 billion in FY23 primarily due to the increase in the corporate income tax rate, which resulted in the Group’s tax expense increasing by 98% to Rs. 15 billion during the year. Profit attributable to owners of the parent in FY23 was down by 10% to Rs. 16.3 billion. Hayleys paid a six year high interim dividend of Rs. 5.35 for FY23 recently.

In the 4Q of FY23, Profit Before Tax saw Y-o-Y decline of 62% to Rs. 6 billion reflecting the impact of the sharp depreciation of the Sri Lankan rupee in the corresponding period of the previous year and the increase in the tax rate. Post-tax profit declined by 75% to Rs. 3.4 billion. In 4Q, Group revenue however saw a 23% growth to Rs. 117.5 billion and results from operating activities by 47% to Rs. 13.4 billion.

In FY23, the transportation and logistics sector saw revenue soar to Rs. 134.3 billion from Rs. 69.2 billion. The sector’s result nearly doubled to Rs. 15.7 billion in FY23 from Rs. 8.4 billion in the previous year. Transportation and logistics also overtook the consumer and retail as the biggest revenue and profit generator for Hayleys Group. Consumer and retail revenue declined from Rs. 83.4 billion to Rs. 64 billion in FY23. Its result was down to Rs. 7.4 billion from Rs. 8.5 billion in FY22.

The purification products sector saw revenue double to Rs. 60.3 billion and profit nearly triple to Rs. 8.2 billion. The textiles segment also saw a similar trend with Rs. 60 billion revenue and Rs. 4.1 billion profit.

Given the rise in interest rates, taxation and fluctuation in foreign currency, and the current slowdown of the economy, Hayleys said its marketing and business development teams of the group continues to pursue new businesses to diversify the risk arising due to negative externalities, whilst the operational teams focus on improving production efficiencies and reducing costs in order to increase the gross profit margins.