Strong 1Q profit & revenue growth at Hayleys

Sri Lanka’s Hayleys Group has reported strong growth in turnover and profit in the first quarter of the year, traditionally its slowest period.

Pre-tax profit for the three months ending 30th June 2010 grew 42 per cent to Rs 520.8 million on the back of improved performances from most sectors and consolidation in others, the Blue chip conglomerate said in a filing with the Colombo Stock Exchange.

Profit after tax for the period grew 50 per cent to Rs 340.4 million on a turnover of Rs 11.7 billion, which was up 58 per cent over the corresponding three months of last year. Profit attributable to equity holders of the company improved by 20 per cent to Rs 150.7 million.

Hayleys Chairman Mohan Pandithage said the improved performance of the plantations, purification, agriculture and transport sectors primarily contributed to the Q1 performance.

Plantations, which suffered an operational loss of Rs 36.6 million in the first quarter of last year, recorded an operational profit of Rs 234.1 million in the period reviewed. Turnover improved by 263 per cent to Rs 1.4 billion largely due to the consolidation of Talawakelle Tea Estates in the quarter reviewed.

Purification Products contributed Rs 204 million to operational profit and Rs 1.4 billion to turnover.

Agriculture, excluding plantations improved its contribution to operational profit to Rs 144.6 million, led by Agri Inputs which posted a gain of 23.8 per cent.

Transportation achieved a significant 179 per cent growth in operational profit, from Rs 37 million in the first quarter of last year to Rs 103.3 million in the quarter under review.

In addition, noteworthy contributions to turnover also came from Hand Protection with Rs 2.5 billion, Agriculture with Rs 1.7 billion (excluding plantations), and Textiles, accounted for as a subsidiary business from July 2009 onwards, with Rs 1.6 billion.

The Group’s Earnings per Share increased from Rs 1.67 for the corresponding quarter of 2009-10 to Rs 2.01 for the reviewed quarter, an improvement of 20.2 per cent.

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 Messrs A. M. Pandithage (Chairman & 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.

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