Hayleys 1Q turnover grows 17 % to Rs. 17.3 b

A healthy start to FY 2012-13 has seen the Hayleys Group achieve turnover of Rs 17.3 billion and profit before tax of Rs 861 million in the first quarter, with key business sectors making solid contributions.

According to statements filed with the Colombo Stock Exchange, the blue chip conglomerate’s revenue for the three months ending June 30, 2012 reflected growth of 17 percent, with hand protection (Rs 3.4 billion), purification products (Rs 2.7 billion), transportation (Rs 2.2 billion) and plantations (Rs 2 billion) as the leading contributors.

All of these sectors with the exception of plantations improved their contribution to revenue and profit before interest and tax (PBIT), while fibre and textiles, two previously troubled sectors, also achieved noteworthy revivals, the company said.

The plantations sector’s contribution to turnover and profit was impacted by lower rubber prices, and higher wages in the tea sector.

The Group’s net finance costs increased in the three months reviewed due to the increase in interest rates and the impact of the depreciation of the Sri Lanka rupee on the dollar loans of export companies.

Hayleys PLC Chairman Mohan Pandithage said: “The figures compare well against those of the first quarter of last year.

We are encouraged by the improvements in textiles and fibre, and are pleased with the contributions of sectors such as power & energy, industry inputs and construction materials, which show a lot of promise for the future.”

“The outlook for the rest of the year is very positive, as we expect a worthwhile contribution from the Nirmalapura wind power plant once full connection to the National Grid is established in August 2012,” Pandithage said. “The Ceylon Continental Hotel will also be fully operational in Q3 2012 once refurbishment is complete. We are confident that our core businesses will maintain the momentum generated in this quarter through the rest of the year.”

The Board of Directors of Hayleys PLC comprises Messrs A. M. Pandithage (Chairman and Chief Executive), K. D. D. Perera (Deputy Chairman), M. R. Zaheed, J. A. G. Anandarajah, W. D. N. H. Perera, S. C. Ganegoda, H. S. R. Kariyawasan, Dr. Harsha Cabral PC, Dr. M Ranasoma, M. D. S. Goonatileke. R. P. Pathirana and L. T. Samarawickrama.