Hayleys posts five-fold profit improvement in 1H

Robust performances in manufacturing, lower input costs, a shift to higher value products and capital gains from portfolio rationalisation in the first half of 2009/10 have enabled Hayleys PLC to record a five-fold increase in attributable profit, over the Rs 110 million achieved last year, following the best ever quarterly result in the history of the blue chip conglomerate.

Attributable profit increased to Rs 553 million this year, while profit before tax at Rs 1 billion reflected a 48 percent improvement over the corresponding period, according to figures filed with the Colombo Stock Exchange this week.

The Group's profit after tax increased from Rs 377 million in the corresponding six months of the previous year to Rs 817 million for the first half of 2009-10, while turnover remained more or less at the same level.

Hayleys Chairman and Chief Executive Mohan Pandithage said, "The Global Markets and the Manufacturing Sector continued its robust performance despite the effects of the global recession, due to greater efficiencies and lower input costs in some units and a strong focus on value-added products in others.

Local and overseas operations of Hand Protection and Purification Products generated strong results, and the Fibre sector recovered from a loss situation to achieve a profit during the half year," Pandithage said.