Hayleys MGT profit up by 33%

New products and lean manufacturing combined to knit strong top and bottom line results in 2007-08 for Hayleys MGT Knitting Mills, Sri Lanka's largest manufacturer of polyester and polar fleece fabric.

The Hayleys PLC associate which accounts in US Dollars has reported a profit after tax and Economic Service Charge (ESC) of $ 5.877 million for the year ending March 31, 2008, a noteworthy growth of 33.7 percent. Profit before tax at $ 6.026 million was up 32.6 percent, while turnover grew 17.5 per cent to $ 59.7 m.

The figures for the period reviewed were based on the amalgamated results achieved by Hayleys MGT Knitting Mills and its former subsidiary Hayleys ADC Textiles Ltd. "The fact that profit growth in percentage terms was much higher than turnover growth speaks to the substantial gains that we have generated through a whole-hearted commitment to lean manufacturing processes," Hayleys MGT Joint Managing Director Bandula Weerasinghe said.

"Equally significant is the fact that we have simultaneously further enhanced quality and introduced new products into our portfolio." The company's results were achieved in the face of higher costs for inputs such as electricity and fuel and a 22 percent increase in finance costs in the year under review, he pointed out.

Hayleys MGT's Earnings per Share stood at Rs12.84 (US$ 0.12) as at 31st March 2008, 33 percent higher than a year previously. The company expects to increase its range of products in the current year and anticipates continuing benefits from its strategic initiatives, Weerasinghe added.