Exceptionally strong growth in the third quarter of 2012-13 has enhanced Hayleys PLC’s nine month performance, enabling the Blue chip conglomerate in Sri Lanka to report wholesome revenue and profit gains for the period.
Turnover for the nine months ending 31st December 2012 improved by a robust 12 per cent to Rs 52 billion, and profit before tax grew 63 per cent to Rs 3.6 billion from Rs 2.2 billion before capital gains, reported in the corresponding period of the previous year.
Net profit for the three quarters was Rs 2.6 billion as against Rs 1.4 billion excluding capital gains, at the end of the third quarter of 2011-12.
Hayleys Chairman Mohan Pandithage attributed these results to strong growth in all core operations and efficient management of cost of sales. Performance in the December quarter was particularly noteworthy, with profit before tax growth of 116 per cent, he disclosed.
“Despite a weak global economy, our export sectors performed well due to concerted efforts in product and market development, and streamlined operations,” Mr. Pandithage noted. “Our manufacturing companies have continued to innovate and invest in research and development to ensure sustained demand for our products. As a result, sectors such as Hand Protection, Purification and Construction Materials have performed well.”
Hand Protection (Rs 10.9 billion), Purification Products (Rs 8 billion), Plantations (Rs 6.4 billion), Agriculture (Rs 5 billion), Transportation & Logistics (Rs 4.9 billion) and Fibre (Rs 3.7 billion) were the leading contributors to the Group’s turnover in the period reviewed.
Mr. Pandithage said Agriculture faced challenges due to extremes of weather throughout the review period, with a drought followed by floods in the third quarter. Nonetheless, the Hayleys Agriculture and Plantations sectors had performed in a creditable manner during the first nine months of the year.
The Transportation & Logistics sector showed strong growth as did the Construction Materials sector and the Amaya Group. The Power and Energy sector also turned in a noteworthy performance in the first nine months.
The newly refurbished Ceylon Continental Hotel, rebranded as The Kingsbury, commenced operations in December and is expected to make a strong contribution to earnings in the future, Mr. Pandithage said.
Adjudged Sri Lanka’s Best Corporate Citizen four times, the Hayleys Group employs more than 33,000 people, and accounts for 2.51 per cent of the country’s export income.
The Board of Directors of Hayleys PLC comprises Messrs Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Deputy Chairman), Rizvi Zaheed, Johnpillai Anandarajah, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Dr. Mahesha Ranasoma, Mangala Goonatileke, Ranil Pathirana and Lalin Samarawickrama.