Strong operational growth :

Hayleys records net profit of Rs 3.6 b

Hayleys PLC has more than quadrupled net profit and profit attributable to equity holders for the nine months ending December, 31, in a performance that reflects the accelerated momentum of the Blue chip conglomerate in FY 2011-12. With strong operational growth in key manufacturing sectors and capital gains being complemented with noteworthy contributions from new areas of business, the Group has reported profit after tax of Rs 3.6 billion at the end of the third quarter. Profit attributable to equity holders of the parent company amounted to Rs 2.3 billion on pre-tax profit of Rs 4.3 billion, the Group said in a filing with the Colombo Stock Exchange.

Turnover for the nine months increased to Rs 46.4 billion, swelled by significant contributions to top line growth by businesses in the Hand Protection, Purification Products, Plantations and Agriculture sectors.

In a statement accompanying the financial statements for the period reviewed, Hayleys Chairman Mohan Pandithage said the Group expects to maintain positive results in the fourth quarter of the year ending 31st March 2012.

Pandithage said improved turnover and profit in several sectors in the first nine months of the year, particularly from those in Global Markets and Manufacturing, and substantial capital gains of Rs 2.1 billion from subsidiaries of Hayleys PLC contributed to the results reported.

“The Hand Protection sector performed exceptionally well and strong contributions came from Purification Products, Agriculture and Plantations, although the Plantation sector profits were lower than in the corresponding nine months of last year, consequent to the wage hike in the sector and lower demand for tea,” he said.

Transportation also made a worthwhile contribution, as did the relatively new Construction Materials sector.

The Fibre and Textiles sectors need to improve their performance, Pandithage noted. Business units within the Leisure and Aviation sector performed well in the period under review. Since its purchase, Amaya Leisure has reported a positive three-month performance. The Ceylon Continental Hotel is undergoing a substantial refurbishment.

The Power and Energy sector posted mixed results, with Industry Inputs performing well while Power and Energy reported lower profits for the nine months.

Established in 1878 and adjudged Sri Lanka’s Best Corporate Citizen four times, the Hayleys Group employs more than 30,000 people, and accounts for 2.78 percent of the country’s export income.