Hayleys posts better 9-month result but looking for higher growth

CORPORATE RESULT: Hayleys Group has posted a profit after tax of Rs 955 million at the end of the third quarter of 2006-07, a growth of 41 per cent that reflects a notably improved nine-month financial performance this year, despite an unexpected slower third quarter.

In results released to the Colombo Stock Exchange on Friday, the Sri Lankan multinational reported pre tax profits of Rs 1.3 billion, up 24 per cent over the corresponding nine months of 2005-06, and a growth of 31 per cent in profit attributable to equity holders, from Rs 386 million to Rs 505 million. Group turnover grew 22 per cent in the period reviewed, to Rs 21.1 billion.

Commenting on these results, Hayleys Chairman N. G. Wickremeratne said the Group was nevertheless not completely satisfied with the rates of growth achieved in the context of its potential.

"We expect the results for the whole year to be better than the results of last year, but below our expectations," he said.

"Many initiatives are on-going to move performance closer to levels that reflect the true potential of Hayleys."

Among the main contributors to Hayleys turnover in the period reviewed were Hand Protection with Rs 5.7 billion (an increase of 44 per cent over the 3rd quarter of last year), Transportation (the Hayleys Advantis Group) with Rs 3.2 billion (up 46 per cent) Consumer Products with Rs 2.9 billion (up 17 per cent), Purification Products with Rs 2.3 billion (up 28 per cent), and Fibre with Rs 2.2 billion (an increase of 6 per cent).

The larger contributions to Group operating profit came from Transportation (Rs 395 million) and the Hand Protection (Rs 356 million) and Plantations (Rs 299 million) business of the DPL Group.

Purification Products posted an operating profit of Rs 126 million in the review period against a loss of Rs 92 million at the end of the third quarter of last year. The share of profit from Associates rose by 26 per cent to Rs 244 million.