Hayleys turnover up 29% in first half

THE Hayleys Group has reported strong performance from its transport and inland marketing sectors in the half year ended September 30, 2005, with useful contributions from Hand Protection and Plantations.

According to results released to the Colombo Stock Exchange last week, Group turnover in the second quarter of 2005-06 grew a healthy 35 per cent to Rs. 5.8 billion, boosting first half turnover to Rs. 10.9 billion, a cumulative growth of 29 per cent over the first half of last year.

This growth was based on strong turnover growth in sectors such as Transportation (up 65.8 per cent), Agri inputs (up 76.6 per cent) and Consumer Products (up 53.7 per cent), the Group said.

Income from associates grew 39 per cent to Rs. 120.7 million for the six months reviewed, with Hayleys MGT Group being a notable contributor.

Hayleys Chairman Rajan Yatawara said the post-tsunami strength of the Rupee, which continues to be disproportionate to the rate of inflation, affected the botton lines of the Group's export companies.

Continued raw material shortages in two key sectors in the second quarter of the year have also eroded anticipated profit growth for the Group.

A drop of 86 per cent in operating profit from the Group's fibre segment, and losses in its purification businesses, resulted in a drop in pre and post tax profits.

Pre tax profit for the period under review at Rs. 684.4 million was down 7 per cent, while profit after tax and minority interest was down 14 per cent Rs. 237.9 million.

Despite these adverse factors, the Hayleys Group remains focused on a significantly improved bottom line by the end of the financial year, with contributions from new local and international operations and expectations of coconut production picking up in the second half to 2004 levels Yatawara said.