Hayleys profits impacted
Hayleys PLC has posted a turnover of Rs. 16.6 billion in the six
months ending September 30, 2008, achieving top line growth of 19 per
cent, but recorded lower profits over the corresponding period of last
year due to a tough second quarter for its businesses in Global Markets
and Manufacturing.
In first half results released to the Colombo Stock Exchange this
week the conglomerate reports that profit before tax at Rs. 741 million
was down 16 per cent, while profit after tax and losses from
discontinued operations declined 19 per cent to Rs. 377.5 million.
Profit attributable to equity holders of the company dipped 11 per cent
to Rs. 110 million.
Elaborating on the Group’s performance, Hayleys Chairman and CEO N.
G. Wickremeratne said: “This result was due largely to the Group’s
Global Markets and Manufacturing businesses being beleaguered by
escalating costs and a static US$/SL Rs. exchange rate. Despite measures
being taken to mitigate their effect, the erosion of margins continued.
“He said Purification Products made a substantial contribution,
helped by the performance of its overseas operations. The contribution
of Textiles remained significant but was much lower than last year. The
Hand Protection Sector was seriously impacted by the hostile environment
and by continuing losses in DPL Thailand, and the Fibre business fared
badly.
“The Agriculture and Agri Business Cluster performed well, with the
performances of Agri-inputs and Plantations proving to be quite
outstanding. The Transportation Sector performed well as it has done
over the last several years,” Wickremeratne said.
Losses from discontinued operations amounted to Rs. 50.8 million. The
Group’s exit from Consumer Durables will be complete by year- end. |