Hayleys records Rs. 52.6 bn turnover | Daily News
In a challenging first quarter of 2019/20

Hayleys records Rs. 52.6 bn turnover

Hayleys PLC’s group turnover grew by 4% to Rs.52.6 bn during the first quarter of the 2019/20 financial year, upheld 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. The directors said in a statement the Group has demonstrated resilience in challenging conditions to record an improvement in turnover and operating performance during the period.

In terms of segmental operating performance, Textiles (+327%), Purification (+84%) and Eco Solutions (+32%) were the most significant contributors to profit growth. Consumer & Retail, Transportation & Logistics, Power & Energy, Hand Protection and Agriculture sectors have also remained major contributors to the consolidated operating profit as in the previous periods.

The performance of the Leisure Sector was significantly impacted by the April 21st terrorist attack which directly affected The Kingsbury Hotel and the subsequent decline in tourist arrivals into Sri Lanka due to adverse travel advisories.

Resultantly, 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 continues to enable Hayleys to withstand challenges stemming from the operating landscape” said Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC. Further, he said, “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.”

 


 

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