Hayleys MGT's 1H profits dip

Hayleys MGT Knitting Mills, the largest manufacturer of polyester and polar fleece fabric in Sri Lanka has reported a turnover of US$ 31.9 million for the six months ending September 30, 2008, a growth of 12 per cent over the first half of the previous year.

This growth was achieved despite production volumes remaining on par with that of the corresponding six months, and was made possible by a greater focus on value added products in the company's portfolio, Hayleys MGT Joint Managing Director Bandula Weerasinghe said.

However, the additional costs of energy in the period reviewed had negated these gains by eroding margins, he disclosed.

According to results released to the Colombo Stock Exchange this week, Hayleys MGT's profit after tax and Economic Service Charge (ESC) at $ 1.425 million reflected a decline of 45 per cent over the first six months of 2006-07, despite the growth in turnover.

In order to offset the rising costs of energy, Hayleys MGT Knitting Mills has invested significantly on a biomass steam generator which is expected to be commissioned before the end of the financial year, Weerasinghe said. This is believed to be the biggest firewood fuelled steam energy generator in the country, he added.

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.

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.