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Lankan
multinational’s profit after tax grows 41% to Rs 955 million;
turnover tops Rs 21 billion
The Blue chip Hayleys Group has posted a profit after tax of Rs
955 million at the end of the third quarter of 2006-07, a growth
of 41 per cent that reflects a notably improved nine-month
financial performance this year, despite an unexpected slower
third quarter.
In results released to the Colombo Stock Exchange yesterday, the
Sri Lankan multinational reported pre tax profits of Rs 1.3
billion, up 24 per cent over the corresponding nine months of
2005-06, and a growth of 31 per cent in profit attributable to
equity holders, from Rs 386 million to Rs 505 million. Group
turnover grew 22 per cent in the period reviewed, to Rs 21.1
billion.
Commenting on these results, Hayleys Chairman N. G.
Wickremeratne said the Group was nevertheless not completely
satisfied with the rates of growth achieved in the context of
its potential. "We expect the results for the whole year to be
better than the results of last year, but below our
expectations," he said. "Many initiatives are on-going to move
performance closer to levels that reflect the true potential of
Hayleys."
Analysing the sectoral performance of the Group, Mr.
Wickremeratne said 'Global Markets and Manufacturing,' the
grouping covering the Group's businesses in Hand Protection,
Textiles, Purification Products and Fibre had performed better
than in the previous year, with the Hand Protection sector and
the Hayleys associate company in the Textiles sector Hayleys MGT
Knitting Mills registering particularly noteworthy results.
However, overall results were impacted by substantial losses
incurred by Onril, a Fibre sector company. DPL Thailand too
continued to be affected by volatile rubber prices and the
appreciation of the Thai Baht.
The Transportation business continued to perform strongly,
despite the decline in ship charter rates in the recent past.
The Group disclosed that the Transportation sector had recently
secured important contracts to provide logistics services in Sri
Lanka and India to large and prestigious client organisations
and this is likely to have a favourable impact on future
earnings.
In the 'Agriculture and Agribusiness' grouping encompassing
companies in agriculture, agri- inputs and plantations,
Plantations performed strongly in the 9 months to 30th September
which were consolidated in the Group's financials.
The Agri- inputs business however came under some pressure due
to difficult weather conditions.
The Consumer sector recorded a result lower than in the previous
year, but steps have been taken to place this business on a
better footing, Mr. Wickremeratne disclosed.
Among the main contributors to Hayleys turnover in the period
reviewed were Hand Protection with Rs 5.7 billion (an increase
of 44 per cent over the 3rd quarter of last year),
Transportation (the Hayleys Advantis Group) with Rs 3.2 billion
(up 46 per cent) Consumer Products with Rs 2.9 billion (up 17
per cent), Purification Products with Rs 2.3 billion (up 28 per
cent), and Fibre with Rs 2.2 billion (an increase of 6 per
cent).
The larger contributions to Group operating profit came from
Transportation (Rs 395 million) and the Hand Protection (Rs 356
million) and Plantations (Rs 299 million) business of the DPL
Group. Purification Products posted an operating profit of Rs
126 million in the review period against a loss of Rs 92 million
at the end of the third quarter of last year. The share of
profit from Associates rose by 26 per cent to Rs 244 million.
Adjudged Sri Lanka's 'Best Corporate Citizen for the past three
years, the Hayleys Group adopted a new brand identity on 1st
January 2007, which is intended to focus attention internally on
the realisation of the full potential of the Group in the future
and support many initiatives now underway to give greater
expression to its core strengths.
Established in 1878, the Hayleys Group accounts for 1.9 per cent
of Sri Lanka's GDP and 3.7 per cent of the country's export
income. The Group's businesses have been grouped as 'Global
Markets and Manufacturing' comprising Fibre, Hand Protection,
Purifiction Products and Textile sectors, 'Agriculture and
Agri-business' comprising Plantations, Agri Products and Agri
Inputs sectors, 'Transportation and Infra-structure' comprising
the Transportation, Power & Energy and Industry Inputs sectors,
'Consumer' and 'Resorts'. Hayleys Group is strongly focussed on
domestic value-addition.
The Board of Directors of Hayleys PLC comprises Messrs N. G.
Wickremeratne (Chairman), A. M. Pandithage (Deputy Chairman), R.
A. Ebell, L. K. B. Godamunne, P. S. P. S. Perera, J. D.
Bandaranayake, A. Hettiarachchy, M. R. Zaheed, A. M. Senaratna+
J. A. G. Anandarajah and T. L. F. Jayasekera
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