Hayleys Group delivers improved performance in 2Q

Monday, 11 November 2019 00:31 - - {{hitsCtrl.values.hits}}

The Hayleys Group, Sri Lanka’s most diversified conglomerate, posted improvements in turnover, operating performance and overall profitability during the second quarter of 2019/20 supported by the strong performance of its export businesses.

Meanwhile, the Group also recorded an improvement in turnover and operating profit for the 1H of 2019/20, although overall profitability was pressured by an increase in finance costs and persistent industry challenges in the Retail and Leisure sectors.

The Group posted a turnover of Rs.105.4 billion (+2%) during 1H2019/20, supported by top-line growth in Purification (+26%), Textiles (+32%), Hand Protection (+2%) and Industrial Inputs (+20%). Improvements in the core performance of key sectors, particularly in export-oriented business lines is reflected by the 5% increase in Consolidated Earnings before interest, tax, depreciation and amortisation (EBITDA) to Rs.9.7 billion during the period. Consolidated operating profit also grew by 5% to Rs.7.1 billion, driven primarily by the Purification (+70%), Eco Solutions (+41 %) and Textiles (+169%) sectors.

Haycarb PLC, the Group’s Purification Sector achieved strong growth driven by the continued expansion of its value-added product portfolio as well as ongoing focus on lean manufacturing and supply chain initiatives. Meanwhile, the Retail and Leisure Sectors continue to be adversely impacted by the unfavourable operating landscape and macro-economic challenges.

The Group’s 2Q performance improved in comparison to the corresponding period last year, with profit before tax increasing by 18% to Rs. 1.2 billion and profit after tax increasing by 40% to Rs. 714.3 million. Consolidated finance costs increased by 7% to Rs.6.6 billion resulting the Group’s consolidated pre-tax profit to decline by 19% to 1.5 billion. Meanwhile, the Group’s total assets amounted to Rs.238.5 billion by end-September 2019, an increase of 3% compared to end-March 2019.

“We remain optimistic regarding the Group’s performance in the coming quarters given the anticipated recovery of the country’s retail and tourism sectors, the expected reduction in finance costs and the continued growth of our export businesses,” said Hayleys PLC Chairman and Chief Executive Mohan Pandithage.

The Board of Directors of Hayleys PLC comprises Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Ruwan Waidyaratne, Hisham Jamaldeen, Aravinda Perera, Jayanthi Dharmasena, Rohan Karr and Gamini Gunaratne.