Higher input costs erode Hayleys profits

CORPORATE RESULT: Hayleys, has declared a final dividend of 17.5 per cent for the concluded financial year, bringing total dividends for the year to 35 per cent, on par with 2004-05, despite recording a disappointing year.

In financial results released to the Colombo Stock Exchange today, the Group reported that notwithstanding a turnover of Rs. 24 billion for 2005-06, a healthy growth of 23.5 per cent over the previous year, pre and post tax profit had declined as a result of adverse factors on which the Group had reported throughout the year with the release of its quarterly results.

The impact of these factors on key business sectors such as Purification Products and Fibre and to some extent on Hand Protection, resulted in Group profit before tax declining by 21 per cent to Rs. 1,484.5 million in the year reviewed, while profit after tax and minority interest, at Rs. 586.3 million was down 24 per cent.

Commenting on the overall corporate results of the Group, Hayleys Chairman Rajan Yatawara said: "The performance in the past year has been disappointing.

Instead of the predicted 50 per cent increase both in Group profits before tax and profits attributable to shareholders, the result was a 21 per cent and 24 per cent decline respectively. Many of the benchmarks we set ourselves were not reached."