Hayleys PLC, one of the most diversified conglomerates in Sri Lanka, once again proved its strength during challenging conditions, with a notable improvement in turnover and operating performance during the first quarter of the 2019/20 financial year.
The Group’s turnover grew by 4% to Rs.52.6 bn during the period, sustained mainly by the top line growth in Hand Protection (+10%), Purification (+24%) and Textiles (+41%) sectors . Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) also increased by 5% to Rs. 4.6 bn during the period while consolidated operating profit grew by 4% to Rs. 3.3 bn. High finance cost resulted in decline of the consolidated pre-tax profit to Rs. 285 mn.
With regard to segmental operating performance, Textiles (+327%), Purification (+84%) and Eco Solutions (+32%) were the major contributors to profit growth. Consumer & Retail, Transportation & Logistics, Power & Energy, Hand Protection and Agriculture sectors have also remained chief backers to the consolidated operating profit as in the previous periods. The functioning of the Leisure Sector was drastically crashed by the terrorist attack occurred in April this year. The attack which directly affected The Kingsbury Hotel, resulted the subsequent decline in tourist arrivals into Sri Lanka. The Leisure sector generated an operating loss of Rs. 364 mn, negatively impacting consolidated profitability. The Construction Materials sector recorded a 51% decline in operating profit reflecting the slower than expected recovery in the country’s construction sector. Meanwhile, subdued consumer sentiments affected the performance of the Group’s Consumer & Retail sector which saw operating profits declining by 13% during the quarter.
“The diversity in the Group’s operations continue to enable Hayleys to survive challenges stemming from the operating landscape” said Mr.Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC. Further, he stated “We are encouraged by the faster than expected recovery of the country’s tourism sector and are hopeful of a strong Winter season this year. We also anticipate interest rates to decline over the short-to-medium term, supporting earnings expansion.”
The Board of Directors of Hayleys PLC includes Messrs. Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Ruwan Waidyaratne, Hisham Jamaldeen, Aravinda Perera, Noel Joseph, Jayanthi Dharmasena and Rohan Karr.