Strong sectoral contributions drive Hayleys 3Q PBT to Rs. 1.7 b

Hayleys Chairman/Chief Executive Mohan Pandithage and Hayleys Co-Chairman Dhammika Perera

Sri Lankan multinational Hayleys PLC has recorded a strong all-round performance in the third quarter of 2018 (3Q18), as the Group turnover rose by 20% Year-on-Year (YoY) to Rs. 59.7 billion, resulting in a sharp 80% YoY increase in Group’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to Rs. 9 billion for the quarter.

In a statement, Hayleys said the Group’s nine months performance was equally impressive with turnover reaching an enviable Rs. 163 billion and the EBITDA reaching Rs 15.1 billion. The profit from operating activities of the Group was Rs.11.3 billion, which is a 68% YoY improvement. However, the net Finance Cost increased to Rs. 7.7 billion from Rs. 3.9, attributing to the inclusion of Singer Group’s finance cost and the cost of funding recent acquisitions. The Profit before tax (PBT) of Rs. 3.5 billion reflect a 19% improvement over the previous year while the PAT increased by 23% to Rs. 1.9 billion.

“We are pleased to see such a strong performance across the Hayleys Group over the last quarter. Taken together with the cumulative results of the period, our businesses have displayed resilience in the face of significant volatility in the domestic and international economy,” Hayleys Chairman and Chief Executive Mohan Pandithage said.

“Bolstered by the consolidated 9 months results of our recent acquisition, Singer (Sri Lanka) PLC, the Retail sector helped to enhance the Group’s results. Further, the outstanding performances in our export businesses, increased volume in the Transportation and Logistics sector also have contributed well to the Group’s bottom line. Despite the challenging economic conditions, we move into the final quarter with complete confidence in our ability to deliver planned results,” he added.

Due to consolidation of Singer (Sri Lanka), the Group’s Retail sector expanded revenue during the 9 months to 31 December 2018 to Rs. 52.4 billion, against a previous Rs. 19.9 billion while operating profit rose sharply from Rs. 966 million to Rs. 3.4 billion. 

The Group’s Transportation and Logistics sector posted similarly impressive results, expanding turnover to Rs. 33 billion, from Rs. 25.8 billion in the previous year, while operating profit rose from Rs. 1.9 billion to Rs. 2.2 billion. During the quarter, the sector’s distribution centre capacity was increased with completion of new projects including the Advantis Logistics City while expanding their global presence. 

A strong performance in the Group’s Agriculture sector resulted in turnover rising to Rs. 10.8 billion, from a previous Rs. 10.1 billion while operating profit expanding from Rs. 736 million to Rs. 1.2 billion during the 9 months period. 

The Purification Products sector (Haycarb Group) posted expanded turnover of Rs. 14.3 billion, against a previous Rs. 10.9 billion while operating profit rose significantly from Rs. 701 million to Rs. 1 billion. The Group’s Hand Protection sector (Dipped Products PLC) recorded a turnover of Rs. 12.9 billion while operating profit in the sector expanded from Rs. 266 million to Rs. 622 million. 

Another notable performance was seen in the Group’s Eco-Solutions sector which manufacture and export value added coconut fibre products recorded an increase in turnover from Rs. 3.2 billion to Rs. 5 billion, and went on to make a vital reversal in its bottom line, posting a profit of Rs. 302 million against a loss of Rs. 59 million during the 9 months. 

The Group has also earned a series of prestigious accolades over the recent past including being crowned Gold Award winner for Overall Excellence in Financial Reporting at the CA Sri Lanka Annual Report Awards together with a further 11 awards. Additionally, the Group also emerged at the top of the LMD Top 20 rankings for 2018 for the second consecutive year. 

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, Lalin Samarawickrama, Ruwan Waidyaratne, Hisham Jamaldeen, Aravinda Perera, Noel Joseph and Jayanthi Dharmasena,