Hayleys 6-month turnover reaches Rs 35 billion

Strong operational performances in all core business sectors have enabled Hayleys Group to carry its first quarter growth into the second quarter of the financial year, to post healthy revenue and profit figures for the six months ending September 30, 2012.

Turnover grew 12 percent to Rs 34.8 billion and profit before tax was Rs 2.1 billion, a growth of 51 percent over the Rs 1.4 billion (excluding capital gains of Rs 2.1 billion) recorded in the corresponding half of last year.

Net profit for the six months, at Rs 1.4 billion, also compares well with the Rs 1 billion PAT (excluding capital gains) in the first half of 2011-12.

“We are pleased to note that all our major sectors recorded growth during this half. Sectors such as Purification, Hand Protection, Plantations, Transportation and Logistics and Power and Energy have seen very significant earnings growth compared to the previous year, in spite of tough conditions in key export markets,” commented Hayleys Chairman Mohan Pandithage. Hand Protection (Rs 7.3 billion), Purification Products (Rs 5.9 billion), Transportation & Logistics (Rs 3.4 billion), Plantations (Rs 4.2 billion) Agriculture (Rs 3 billion) Textiles (Rs 3.1 billion) and Fibre (Rs 2.5 billion) were the leading contributors to the Group’s turnover in the six months reviewed.

Fibre and Textiles, two previously underperforming sectors, posted profit before interest and taxes (PBIT) of Rs 231.8 million and 27.2 million respectively, the latter recovering from an operating loss of Rs 271.7 million in the corresponding six months of last year.

Hand Protection, without the benefit of capital gains generated in the first half of last year, contributed Rs 670.3 million to PBIT, while Purification Products’ contribution of Rs 719.9 million was more than double its contribution in the corresponding six months of 2011-12. Transportation and Logistics, Plantations, Construction Materials also significantly improved their contributions to PBIT.

“We remain bullish on prospects for the rest of the financial year. Further, we expect the re-opening of the newly refurbished Ceylon Continental Hotel in the third quarter to boost the performance of the Leisure and Aviation sector,” Pandithage said.