Hayleys records strong performance

Healthy performances by the Agri Inputs, Plantations, Purification and Transportation sectors have helped the Hayleys Group to post turnover of Rs 38.5 billion and pre-tax profit of Rs 1.5 billion in the nine months ended 31st December 2010. According to income statements filed with the Colombo Stock Exchange, the Blue Chip conglomerate’s revenue grew by a solid 42 per cent over the corresponding period of last year, with all key business sectors except Agri Products recording healthy top line growth. The inclusion of Talawakelle Tea Estates PLC, Hotel Services (Ceylon) PLC, Hunas Falls Hotels PLC, the Alumex Group and Hayleys MGT Knitting Mills PLC, as subsidiaries of Hayleys PLC during the review period also contributed to the increased turnover.

Key contributors to the operating profit were Agri Inputs, Purification, Hand Protection, Transportation and Plantation sectors. An operational loss of Rs 76 million by companies in the Fibre sector on account of raw material shortages, and an operational loss of Rs 480 million from Hayleys MGT Knitting Mills, for which additional provisioning was required for inventories and receivables in line with announcements made to the CSE, contributed negatively to the Group’s pre-tax profit of Rs 1.5 billion.

The situation at Hayleys MGT Knitting Mills was largely due to challenging operational circumstances which the Board believes has since been corrected, Hayleys PLC Chairman Mohan Pandithage said in a statement accompanying the figures.

"The quarter was a challenging one for the Global Markets & Manufacturing sector of the Group, with substantial shortages and increases in costs of most raw materials such as fibre, latex, coconut charcoal and cotton yarn used by these businesses, eroding profit margins," he said. "However the Purification and Hand Protection sectors have continued to make substantial contributions to the Group’s operating profits for the reporting period."

Pandithage reported that in the nine months reviewed, the Group, continued to invest in its key sectors, took total control of Mabroc Teas (Pvt) Ltd., a company engaged in export of teas, by acquiring the balance 60 per cent of its equity in December 2010. The company also acquired a further one third of Hayleys Plantation Services (Private) Ltd., (which has controlling interest in Talawakelle Tea Estates PLC) and Alutec Anodizing & Machine Tools (Private) Ltd., during the nine month period under review. these investments and by consolidation of its core activities, the Group is expected to post improved results in the 4th quarter," Mr. Pandithage said.

Established in 1878 and thrice adjudged Sri Lanka’s Best Corporate Citizen, the Hayleys Group employs more than 30,000 people, and accounts for 2.45 per cent of the country’s export income.

The Board of Directors of Hayleys PLC comprises Messrs A. M. Pandithage (Chairman & Chief Executive), L. K. B. Godamunne, J.D. Bandaranyake, (resigned w.e.f. 28th January 2011) M. R. Zaheed, A. M. Senaratna, J. A. G. Anandarajah, T. L. F. Jayasekera, K. D. D. Perera, W. D. N. H. Perera, S. C. Ganegoda and H. S. R. Kariyawasan.

source - www.island.lk