THE WORLD OF HAYLEYS

We are Sri Lanka’s leading conglomerate with extensive business interests across 12 industry sectors and globally leading market positions. Through unparalleled relationships across supply chains, distribution channels and customer segments, Hayleys is one of Sri Lanka’s largest value creators and most socio-economically impactful organisations.

Our Purpose: To inspire an inclusive world and a thriving planet

Highlights in 2022/23:

Financial Performance

  • Revenue: Rs.487 bn
  • Profit After Tax: Rs.28 bn
  • Assets: Rs.413 bn
  • Equity: Rs.123 bn

Economic Contribution

  • Economic Value Generated: Rs.143 bn
  • Export Income Generated: USD 651 mn or 5.5% of Sri Lanka’s total exports
  • Job Creation Outside Western Province: >1,800

Shared Value Creation

  • Employees: 31,483
  • Payments to Employees: Rs.40 bn
  • Investment in Community Development: Rs.433 mn

LEADERSHIP

Against a backdrop of extreme turbulence and a scale of volatility we haven’t witnessed in decades, the Hayleys Group demonstrated its characteristic grit and agility, relying on the decisive leadership and unique mindset of our team to ensure continued value creation to our wide ecosystem of stakeholders.

Mohan Pandithage

Strategy & Performance

  • Revenue growth of 44% to reach a record-high of Rs.487.43 bn, driven by the strong performance of the export-oriented sectors
  • Consolidated PBT growth of 20% to Rs.42.75 bn
  • Profit After Tax declined by 2% to Rs.27.67 bn reflecting a near 98% in the Group’s tax expense

Enriching lives, safeguarding livelihoods

  • Emphasis on safeguarding people, measures to support financial well-being and investments in building talent pipelines
  • Value injection through an extensive network of suppliers, smallholders and outgrowers

Shareholder Value creation

  • Earnings per share of Rs.21.80
  • Dividend per share of Rs.5.35, an increase of 34% y-o-y

Embedding ESG

  • Establishment of an ESG Steering Committee with Board and GMC representation
  • On target to meet the Group’s carbon reduction targets

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ENGLISH SINHALA TAMIL

CORPORATE GOVERNANCE

The Hayleys Group’s corporate governance philosophy is underpinned by purpose-driven leadership, high standards of integrity and an organisational culture which is founded on ethical conduct

Highlights in 2022/23
  • Board and Sub-Committee changes: Establishment of an ESG Steering Committee with Board and GMC representation
  • Strengthened the Group’s Bribery and Anti-Corruption Framework
  • Defining new corporate purpose
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Board contribution to value creation

Oversight on strategy and performance

Stakeholder relationships

Effective control environment

Ethics and organisational culture

Integrating
ESG

STRATEGY

The Group’s five strategic pillars were refined to align with Hayleys’ new Corporate Purpose, setting out our roadmap to explore value accretive opportunities that leverage the Group’s resources, capabilities and relationships.

  • Shared prosperity through portfolio growth

    • Inorganic growth through acquisitions
    • Organic growth through capacity expansions
    • Penetration of new markets

  • Customer centricity

    • Focus on innovation and value-addition
    • Catering to customers’ increased emphasis on social and environmental considerations
    • Ongoing customer engagement

  • Nurturing inspired teams

    • Leadership development
    • Care and well-being
    • Succession planning

  • Inclusive business models

    • Expansion of local supply chains
    • Supplier development
    • Strategic and meaningful CSR initiatives

  • Preserving and regenerating nature

    • Formulation of sector-specific ESG roadmaps
    • Decarbonisation
    • Biodiversity preservation
    • Sustainable innovation
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VALUE CREATION AND CAPITAL MANAGEMENT

The Group relies on its resources and relationships (classified into six capitals) to create and preserve value through its diverse business activities

Financial Capital

Funding to pursue strategic growth aspirations

  • Revenue growth: 44%
  • EBIT margin: 13%
  • 7% decline in borrowings
  • Debt to equity ratio: 1.30X

Manufactured Capital

Enables production of innovative, high quality products

  • Capital expenditure: Rs.17.13 bn
  • Capacity expansion in value-added product capabilities across key Sectors

Human Capital

Ensure continuity of operations through timely decision making and action

  • Payments to employees: Rs.40 bn (+19%)
  • Training hours: 265,877 (+7%)
  • Average training hours: 8.5 (+11%)

Social & Relationship Capital

Provides the Group’s social license to operate

  • 97% customer complaints resolved
  • Value injection to suppliers: Rs.392 bn(+65%)
  • CSR investment: Rs.433 mn

Intellectual Capital

Sharpen competitive edge and provide access to new markets through innovation

  • Investment in R&D: Rs.323 mn
  • New products: >540
  • Products in pipeline: >80

Natural Capital

Provides critical resources for business including water, energy and raw materials

  • Total emissions: 9% reduction
  • Energy consumption: 5% reduction
  • Reliance on renewable energy: 67%

PORTFOLIO REVIEW

HIGHLIGHTS STRATEGIC PRIORITIES
Revenue: +37%
PBT: +50%
Total assets: +7%
Eco Solutions
Customer acquisition in new markets
Process efficiencies
Backward integration
Revenue: +36%
PBT: +5%
Total assets: -1%
Hand Protection
Focus on value-added products
Efficiency and cost management drive
Integrating ESG
Revenue: +84%
PBT: +78%
Total assets: +1%
Purification
Innovation of value-added products
Efficiency and productivity
Supply chain effectiveness
Revenue: +90%
PBT: -5%
Total assets: +9%
Textiles
Brand centered strategy
Embedding sustainability
Expansion of INNO portfolio
Revenue: +6%
PBT: -89%
Total assets: -13%
Construction Materials
Export market growth
Product innovation
Efficiency and cost management
Revenue: +65%
PBT: +136%
Total assets: +57%
Plantations
Resource optimisation
Regenerative agriculture
Commitment to quality
STRATEGIC PRIORITIESHIGHLIGHTS
Agriculture
Effective working capital management
Innovation
Managing principal relationships
Revenue: +37%
PBT: +118%
Total assets: +2%
Consumer & Retail
Proactive inventory management
Customer centricity
Manufacturing and supply chain excellence
Revenue: -24%
PBT: -88%
Total assets: -11%
Leisure
Strengthen product offering
Optimising human capital
Revenue diversification
Revenue: +96%
PBT: -43%
Total assets: +4%
Industry Inputs, Power & Energy
Focus on export-oriented business
Regional expansion
Sustainable innovation
Revenue: +24%
PBT: +21%
Total assets: +4%
Transportation & Logistics
Expand international presence
Enhance leadership capabilities
Strengthen Advantis product portfolio
Revenue: +94%
PBT: +38%
Total assets: +3%
Others
Fentons: Growth in solar
HBSIL: New markets and services
Revenue: +46%
PBT: -14%
Total assets: +5%

FINANCIALS

Revenue

Revenue

Rs.487.43 bn

(+44%)

EBITDA

EBITDA

Rs. 71.09 bn

(+69%)

EBIT

EBIT:

Rs.61.07 bn

(+82%)

Profit Before Tax

Profit Before Tax

Rs.42.75 bn

(+20%)

Profit After Tax

Profit After Tax

Rs.27.67 bn

(-2%)

Total Asset

Total Asset

Rs. 412.74 bn

(-2%)

Total Equity

Total Equity

Rs.122.71 bn

(+17%)

Dividends

Dividends

Rs.4.01 bn

(+34%)
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