Hayleys Group records Rs. 27.6 billion consolidated turnover

CORPORATE RESULT: Hayleys Group has recorded a consolidated turnover of Rs. 27.6 billion. Profit before tax was Rs. 1,608 million, up 8 per cent over the previous year, its annual report revealed.

The profit after tax at Rs. 1,089 million was up by 11 per cent, but profit attributable to equity holders of the company fell 9 per cent to Rs. 534 million and the Group targeted a result in the region of Rs. 1 billion or so. In the current year the company has a target of reaching Rs. 900 million at the minimum.

Further, the cumulative effect of these setbacks was nearly Rs. 380 million. This demonstrates that the targets set were not unrealistic and within the potential of the Group.

The textile business of Hayleys MGT Knitting Mills also produced good results with a credible gain in profitability while the purification products business did well to reverse the losses incurred the previous year with a modest profit, the report said.

In the Fibre business, all the units made worthwhile improvement in performance but these were completely negated by the setback at Onril.

The problem in this company, in which locals held 49 per cent of the equity and the balance by foreign shareholders arose from irreconcilable differences that emerged as to cost and pricing of its production.

The purification products and fibre business has for some time encountered difficulties due to excessive local competition for the limited raw material available in Sri Lanka, the reports said.

The plantation business was affected in the latter part of their reporting period due to the go-slow/strike in November and December. It also improved its profits vastly on the back of high rubber prices. Talawakelle Tea Estates, being totally tea-based, did less well but its contribution was still good.

The agri input business profits were much lower than in the previous year due to a poorer Yala season and disruption to agricultural activity in the Eastern Province, arising out of the security situation.

The transportation business was the second largest contributor to Group profits though the contribution was below their record achievement the previous year as a result of a sharp drop in charter rates.

The performance of Hayleys Industrial Solutions, which engages in industrial inputs and power and energy, was about the same as in the previous year. The performance of the Hayleys Consumer was seriously affected last year.

(HSS)