Hayleys impresses with Rs. 854 m 1Q PBT

Significantly better operational results from most sectors of business have enabled Hayleys PLC to make a vigorous start to FY 2011-12, with striking top and bottom line growth in the first quarter.

In results released to the Colombo Stock Exchange, the blue chip conglomerate reported that profit before tax for the three months ending 30 June 2011 grew 60 per cent to Rs. 854 million, while net profit was up 72 per cent to Rs. 606 million, half of the preceding full year’s post-tax profit.

Turnover for the period improved 26 per cent to Rs. 14.7 billion, and profit attributable to equity holders of the company also increased by 72 per cent to Rs. 269 million.

Businesses in Hand Protection, Plantations, Transportation and Logistics generated notably stronger results over the corresponding three months of last year, while loss-making sectors such as Fibre achieved significantly improved positions, Hayleys Group Chairman Mohan Pandithage said.

The Textiles sector, which suffered losses in FY 2010-11 due to the writing down of current assets to reflect net realisable values, contributed Rs. 1.4 billion to turnover. This sector recorded a loss during the first quarter. However a recovery is expected during the latter part of the financial year, Pandithage said.

Purification products contributed with a higher contribution to turnover and a useful contribution to operating profit despite challenging operating conditions, he said.

In segmental results for the three months reviewed, Hand Protection contributed Rs. 3.4 billion to turnover and Rs. 269 million to operating profit, and Plantations contributed Rs. 2.05 billion to turnover and Rs. 378 million to operating profit. Purification products recorded  a turnover of Rs. 1.8 billion and Rs. 150 million operating profit, while the contribution of Transportation was Rs. 1.1 billion to turnover and Rs. 133 million to operating profit.

Hayleys impresses...

Agriculture, excluding plantations, contributed Rs. 1.5 billion to turnover and a significant operating profit of Rs. 159 million which is in line with the corresponding quarter. Consumer Products, with contributions of Rs. 1 billion and Rs. 53 million respectively to turnover and operating profit, also improved performance over the corresponding period.

The Fibre sector, which had been under pressure during the entirety of the preceding year due to raw material shortages, contributed Rs. 1.2 billion to turnover and converted an operational loss of Rs. 53 million in the first quarter of the previous year to an operating profit of Rs. 6.7 million in the three months reviewed.

In the Leisure sector, the performance of Hotel Services (Ceylon) PLC was affected due to ongoing refurbishment of the Ceylon Continental hotel.

Established in 1878 and adjudged Sri Lanka’s ‘Best Corporate Citizen’ four times, the Hayleys Group employs more than 30,000 people, and accounts for 2.78 per cent of the country’s export income.

The Board of Directors of Hayleys PLC comprises A.M. Pandithage (Chairman and Chief Executive), K.D.D. Perera (Deputy Chairman), M.R. Zaheed, J.A.G. Anandarajah, W.D.N.H. Perera, S.C. Ganegoda, H.S.R. Kariyawasan, Dr. Harsha Cabral PC, Dr. M. Ranasoma, M.D.S. Goonatileke, R.P. Pathirana and L.T. Samarawickrama.