- Achieves record-breaking Revenue of Rs.492 bn
- Strategic thrust towards value-added products, customer segments and non-traditional markets
- Renewable energy fulfills 74% of Group’s energy consumption, resulting in a 14% y-o-y reduction in GHG emission (Scope 1 & 2) intensity
The Hayleys Group delivered a year of exceptional growth and profitability, recording a 40% y-o-y increase in Profit Before Tax to Rs. 35.37 bn during the financial year ending 31st March 2025. Consolidated Revenue grew by 13% to an unprecedented Rs.492.20 bn, marking the highest-ever Revenue achievement in the Group’s operating history.
The performance for the year represents the Group’s continued efforts to collectively pursue its strategic ambitions of building an optimal portfolio of businesses, enabling the Group to remain resilient to evolving dynamics in the operating landscape. As one of Sri Lanka’s most socio-economically impactful organisations, the Group also remained steadfast in its commitment to fulfilling its corporate purpose through a relentless focus on triple bottom-line value creation.
As a Group with considerable exposure to global markets, the operating landscape for the year was defined by increasingly interconnected external and internal influences. While global growth was largely resilient in 2024, persistent geopolitical tensions, shifting trade dynamics and divergent recovery trends across regions adversely impacted economic activity.
Meanwhile, domestic macroeconomic conditions stabilised in 2024, supported by continued focus on fiscal consolidation, prudent monetary policy measures and successful debt restructuring. Resultantly, investor and consumer sentiments demonstrated an improvement during the year, fostering a conducive environment for business growth.
The improvement in performance was broad-based with the Group’s export-oriented sectors, Consumer & Retail, Transportation & Logistics as well as Projects & Engineering sectors leveraging their strong market positions to capitalise on the more conducive operating conditions.
The Group’s total export revenue increased by 3% y-o-y to USD 875 mn and accounted for 53% of Consolidated Revenue, as the Group sought to drive deeper penetration in new and existing export markets. Key sectors also placed parallel focus on driving increased contributions from value-added products, as the Group leveraged its research and development capabilities to fuel customer-centric innovation.
The Group’s Revenue growth was driven primarily by the Consumer & Retail, Transportation & Logistics, Hand Protection, Textiles and Purification Sectors. Despite the appreciation of the Sri Lankan Rupee which adversely affected export-oriented sectors, the Group’s Consolidated Gross Profit increased by 8% during the year.
Consolidated Earnings Before Interest and Tax (EBIT) and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 12% to Rs. 47.77 bn and Rs.60.02 bn respectively. Core profitability was upheld by the Group’s ongoing focus on value-added products and customer segments, improvements in operating efficiencies and a strategic emphasis on driving digitalisation across key processes.
The Group’s Net Finance Costs declined by 30% y-o-y during the year, reflecting the downward trajectory of market interest rates. The Group’s Consolidated Profit Before Tax increased by 40% y-o-y to Rs.35.37 bn. Meanwhile, the Group’s Tax Expenses increased by 23% to Rs.12.86 bn reflecting ongoing value creation to the Government.
Overall, the Group delivered an exceptional 52% y-o-y growth in Profit After Tax to Rs.22.51 bn during the reviewed period. The Group’s diverse and resilient earnings profile together with its strong financial position has enabled Hayleys to retain its national long-term rating of ‘AAA (lka)’ by Fitch Ratings, with a stable outlook. Meanwhile, the Group’s Rs.7.0 bn senior unsecured redeemable debenture issue was over-subscribed on the first day of opening, reflecting strong investor confidence in the Group’s earnings potential.
Commenting on the Group’s performance, Chairman and Chief Executive, Mohan Pandithage said, “We remain optimistic on the growth opportunities presented by Sri Lanka’s stabilising macro-economic conditions and favourable demand dynamics, which will augur well for the Group’s domestic businesses. While rapidly shifting trade dynamics and geopolitical issues have affected the near-term visibility of the global economy, the diversity in the Group’s business interests, customer segments and geographies are expected to mitigate these impacts to a considerable degree.
“As we move forward, we will continue to pursue the strategic priorities that have consistently positioned us for growth and long-term competitiveness; these include optimising our portfolio of businesses, seeking growth in new markets, driving customer-centric innovation, developing our teams and integrating sustainability across our operations.”
The Group remains deeply committed to strategically integrating Environment, Social and Governance (ESG) considerations across its processes, operating models and decision-making. Despite the significant expansion in business activity, the Group contained the increase in its Scope 1 & 2 Green House Gas Emissions to 3% during the year, driven by increased reliance on renewable energy sources which fulfilled 74% of the Group’s energy requirements during the year. Meanwhile, emission intensity improved by 14% y-o-y during the year, demonstrating the Group’s commitment to decoupling business growth from adverse environmental impacts.
With a diverse and highly skilled workforce of over 37,000 employees, the Group regards its people as its greatest asset and continues to place strong emphasis on enhancing its employee value proposition.
As a Group that is deeply and intrinsically linked to the socio-economic fabric of Sri Lanka, Hayleys continues to inject unparalleled value across its extensive supply chains and communities, driving economic empowerment across the country.
The Board of Directors of Hayleys PLC consists of, Chairman and Chief Executive Mohan Pandithage, Co-Chairman Dhammika Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr.Harsha Cabral, PC, Ruwan Waidyaratne, Aravinda Perera, Jayanthi Dharmasena, Rohan Karr, Gamini Gunaratne, Timothy Speldewinde, Yohan Perera and Jonathan Alles.
