Sunday, May 27, 2012

Conglomerate Hayleys reports best year ever in group history

Sri Lanka’s Hayleys Group has announced its best-ever year earnings in the history of the 134 year old conglomerate, tripling net profit in FY 2011-12. With its Agriculture, Hand Protection, Purification and Transportation sectors turning in particularly strong performances, the group improved turnover to Rs 62.5 billion, growing by Rs 8.1 billion or 15 % over the 12 months ending 31st March 2012, the organisation said in a media statement.

Post-tax profit grew by 238 % to Rs 3.8 billion. While capital gains of Rs 2.3 billion contributed substantially to these results, profit before tax from operations excluding capital gains reflected a growth of 23 %. Profit attributable to equity holders of the company increased from Rs 677 million in 2010-11 to Rs 2.5 billion in the year under review.

Hayleys Chairman Mohan Pandithage said most sectors made positive contributions to the group’s earnings in the concluded financial year. “It is satisfying to note that our performance is a reflection of a number of strategic actions taken in recent years,” he said, adding: “A fundamental change that was implemented in 2009 was the policy that Hayleys will focus on investments in which we have ownership and management control, and exit passive stakes. This was done to exercise more control over our income streams, and this approach is now reaping rewards.”

He said in the core business areas, the group has mastered the business, grown organically and become leaders on the national as well as the global stage. While noting that the group has taken strong positions in industries that have strong future growth potential based on long term economic and socio-political trends, Mr Pandithage said at the same time, the management is well aware that with a paradigm shift in the Sri Lankan economy since 2009, there are new growth areas in the economy that the Group ought to have exposure to.

“It is well established that the leisure sector will be a major growth area in Sri Lanka in the next decade,” he said, pointing out that the exposure of Hayleys to the leisure sector is holistic, ranging from hotel ownership, management, travel agency and tour operations. The Hayleys Group employs more than 30,000 people, and accounts for 3.13 % of the country’s export income.

source - www.sundaytimes.lk

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