Hayleys Fibre consolidates turnaround in 2012/2013

Hayleys Fibre PLC, formerly known as Hayleys Exports, and a global player in the natural fibre products market, recorded a commendable turnaround in performance in the financial year 2012 / 2013.

Despite a drop in turnover to Rs. 487 million during the year from Rs. 595 million in the previous financial year, due largely to conscious consolidation of operations and a movement away from non-value generating product portfolios, the Company posted a Profit Before Tax of Rs. 30.7 million, in comparison with a Loss Before Tax of Rs. 7.2 million in 2011/2012. In a filing to the Colombo Stock Exchange, Hayleys Fibre reported a PAT of Rs. 26.1 million, and an appreciation in the Earnings Per Share to Rs 3.24 from a Deficit Per Share of Rs. 1.00 in the previous financial year.

"A concerted strategy focused on rationalized operations has paid dividends this year," notes Prasanna De Silva, Managing Director of Hayleys Fibre.

"The turnaround is largely attributable to our focus during the year to consolidate operations from three manufacturing facilities to one, thereby benefitting from leaner production, associated efficiencies, synergisedutilization of resources and better controls," De Silva further added.

During the reporting period, Hayleys Fibre also redefined its operation bias towards value- added products moving away from a number of traditional product segments due to their negligible contribution to profitability.

"Our strategic intention during the year, and of course going forward, will be to enlarge our value-added product portfolio.We developed a number of variations to our existing product range in 2012/2013 and have a number of patents pending for our innovations," De Silva noted .

However, the Company continued to grapple with challenges posed by a constrained global economy, with many of its traditional markets in Europe and the United States demonstrating declining demand.

Going forward, De Silva is confident of the Company's ability to develop on the turnaround demonstrated during the year. "Currently, a number of breakthrough innovations are undergoing testing with the collaborative support of external technical partners, so we hope to enlarge the product portfolio in the coming year whilst also pursuing a market diversification strategy to enhance our market presence in the US, East Asia and Australia," he noted. Hayleys Fibre PLC offers an extensive range of products, including mattress fibre, bristle fibre, twisted fibre, coir twine, woven geo textiles, stitched erosion control blankets, coir pillows, bio fibres, coconut husk chips, coco poles, grow sticks, coir logs and coir slabs.