Hayleys posts highest ever profits in history

Profit after tax exceeds Rs 2,637 million:

Hayleys Group has achieved exponential growth in all key performance indicators in 2009-10 establishing record figures for revenue, profit and investment in a remarkable year of milestones. According to figures released to the Colombo Stock Exchange, the blue chip conglomerate’s profit before tax more than doubled to Rs 3,351 million in the 12 months ending March 31, 2010, while profit after tax tripled to Rs 2,637 million.

Profit attributable to equity holders of the company grew 5.7 times (471 percent) to Rs 1,775 million. Consolidated turnover, at Rs 38 billion, reflected a growth of 18 percent.

The year also saw the single largest investment in the 132 year history of the company the purchase of a controlling stake in Ceylon Continental Hotel, resulting in total investment in subsidiaries doubling in the year reviewed, and initiatives to rationalise the Group’s businesses and strategies yielding spectacular results,” Hayleys Chairman Mohan Pandithage said.

“Similarly strategic investments were made in the plantation sector subsequent to the balance sheet date with the acquisition of a further one third shareholding of Hayleys Plantations Limited, thereby acquiring effective control of Talawakelle Tea Estates PLC.”

He said key businesses in Global Markets and Manufacturing significantly improved their performances in 2009-10, while the previously loss-making Consumer Products and Fibre sectors recorded an impressive turnaround.

“This result represents the combined impact of internal initiatives to re-balance our portfolio and create an internal dynamism among employees at all levels, and sector-specific efforts to make businesses exposed to the global economic downturn leaner and more competitive,” Pandithage said.

The Group’s Earnings per Share increased from Rs 4.15 a year earlier to Rs 23.67 for the period under review, an improvement of 471 per cent.

The Directors Board of Hayleys PLC has proposed the payment of a final dividend of Rs. 2 per share making the total dividend for the year Rs. 4 per share.

Among the principal contributors to Group performance, Hand Protection accounted for Rs 9.4 billion in turnover and Rs. 835 million in operating profit; Purification Products Rs 5 billion and Rs 697 million in turnover and operating profit respectively and Agri Inputs Rs 4.5 billion in turnover and Rs 389 million in operating profit.

The Textiles sector represented by Hayleys MGT Knitting Mills, in which Hayleys now owns over a 60 percent stake, was accounted for as a subsidiary business from July 2009 onwards and contributed Rs 3.8 billion to turnover and Rs 353 million to operating profit.

The Fibre sector nearly doubled its operating profit to Rs 125 million, and Agri Products converted a loss of Rs 22 million in the previous year to an operating profit of Rs 147 million.