Hayleys MGT posts healthy first half profit

Hayleys MGT Knitting Mills, the Hayleys Group’s cotton and synthetic fabric manufacturing business has posted a net profit of US$ 1.77 million for the six months ending September 30, 2009, recording a growth of 25 percent over the first half of the previous year.

In results released to the Colombo Stock Exchange this week, the company reported that profit before tax and Economic Service Charge (ESC) had grown 20 percent to US$ 1.8 million in the first half of 2009-10, despite turnover declining by a similar percentage to US$ 25.4 million.

This achievement was made possible by a 25 percent drop in the company’s cost of sales, largely as a result of lower energy costs; increased production of synthetic fabrics, a better product mix and lean production practices, Hayleys MGT Jt. Managing Director Bandula Weerasinghe said.

“We had a particularly good second quarter,” Weerasinghe said, disclosing that net profit for the three months ending September 30, 2009, reflected a growth of 64 percent over the corresponding quarter of 2008/09.

The outlook for the rest of the year is equally strong, particularly since the commissioning of the company’s new bio mass steam generator and state-of-the-art rotary and digital printing facility would further offset energy costs and add value to the company’s product range, Weerasinghe said. Hayleys MGT now offers comprehensive fabric printing solutions for both 100 percent cotton and synthetic fabrics.

A major supplier to top international brands such as Marks & Spencer, Next, Nike, Tesco 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.