Hayleys MGT revenue up 14%

Hayleys MGT Knitting Mills, Sri Lanka’s largest manufacturer of polyester and polar fleece fabric has achieved a turnover of US$ 14.9 million in the first quarter of 2008-09, but seen profits fall due to disruption of production as a result of inclement weather conditions.

According to results released this week, the company’s profit after tax and Economic Service Charge (ESC) at $ 705,228 reflected a decline of 19 per cent over the corresponding quarter of last year, despite a 14 per cent growth in turnover.

Hailers MGT Joint Managing Director Bandula Weerasinghe disclosed that floods in the Kalutara District in the first week of June had isolated the company’s manufacturing plant, making it accessible only by boat.

As a result, the company had lost approximately 100,000 kilograms of production, which would have contributed $ 700,000 to revenue.

“If not for this unfortunate occurrence, the company’s performance would have been on par with that of the first quarter of 2007-08, despite the significantly higher costs of furnace oil and electricity,” Weerasinghe said.

A major supplier to top international brands such as Marks & Spencer, Next, Nike, Reebok and Decathlon, Hayleys MGT is the first fabric manufacturer in Sri Lanka to be certified as compliant with the world’s most stringent Social Accountability Standard, SA8000.

The standard represents a comprehensive and flexible system for the management of ethical workplace conditions throughout global supply chains and assures a humane workplace through respect for workers rights.

The company has also received the National Productivity Award in the Large Scale Manufacturing category for its achievements in improving labour and capital productivity.

Hayleys MGT has a production capacity of 4 million metres of fabric per month at its state-of-the-art plant at Narthupana Estate in the Kalutara District.

The company is a key supplier of high quality knitted fabric to the Sri Lankan apparel industry and to export markets.

An ISO 9001 and ISO 14001 Environment Management System certified company, Hayleys MGT has received accreditations from world renowned retailers such as Marks & Spencer, Next, Tesco, British Home Stores (BHS), Mothercare, Sainsbury, Woolworth and Adams.

The company has won numerous awards and commendations for its commitment to Total Quality.