Hayleys records third quarter PBT of Rs.1.7Bn

Feb 12, 2019 (LBO) – Sri Lankan multinational, Hayleys PLC, recorded a strong all-round performance in the third quarter of 2018 (3Q18), as the Group turnover rose by 20 percent Year-on-Year( YoY) to 59.7 billion rupees bn, resulting in a sharp 80 percent YoY increase in Group’s Earnings Before Interest, Tax, Depreciation and Amortisation ( EBITDA)  to 9 billion rupees for the quarter.

The Group’s nine months performance was equally impressive with Turnover reaching an enviable Rs.163 bn and the EBITDA reaching Rs 15.1 bn. The profit from operating activities of the Group was Rs.11.3 bn, which is a 68% YoY improvement. However, the net Finance Cost increased to Rs.7.7 bn from Rs. 3.9 attributing to the inclusion of Singer Group’s finance cost and the cost of funding recent acquisitions.  The Profit before tax (PBT) of Rs.3.5 bn reflect a 19% improvement over the previous year while the PAT increased by 23% to Rs.1.9 bn.

“We are pleased to see such a strong performance across the Hayleys Group over the last quarter. Taken together with the cumulative results of the period, our businesses have displayed resilience in the face of significant volatility in the domestic and international economy,” Hayleys Chairman and Chief Executive, Mohan Pandithage stated.

Further Mr. Pandithage said “Bolstered by the consolidated 9 months results of our recent acquisition, Singer (Sri Lanka) PLC, the Retail sector helped to enhance the Group’s results. Further, the outstanding performances in our export businesses, increased volume in the Transportation and Logistics sector also  have contributed well to the Group’s bottom line. Despite the challenging economic conditions, we move into the final quarter with complete confidence in our ability to deliver planned results,”

Due to consolidation of Singer (Sri Lanka) PLC ,the Group’s Retail sector, expanded revenue during the 9 months to 31st December 2018  to Rs. 52.4 bn, against a previous Rs. 19.9 bn while operating profit rose sharply from Rs. 966 mn  to Rs. 3.4 bn.

The Group’s Transportation and Logistics sector posted similarly impressive results, expanding turnover to Rs. 33 bn, from Rs. 25.8 bn in the previous year, while operating profit rose from Rs. 1.9 bn to Rs. 2.2 bn.

During the quarter, the sector’s distribution centre capacity was increased with  completion of new projects including the Advantis Logistics City while expanding their global presence.

A Strong performance in the Group’s Agriculture sector resulted in turnover rising to Rs. 10.8 bn, from a previous Rs. 10.1 bn while operating profit expanding from Rs. 736 mn to Rs. 1.2 bn during the 9 months period.

The Purification Products sector (Haycarb Group) posted expanded turnover of Rs. 14.3 bn, against a previous Rs. 10.9 bn while operating profit rose significantly from Rs. 701 mn to  Rs. 1 bn. The Group’s Hand Protection sector (Dipped Products PLC) recorded a turnover of Rs. 12.9 bn while operating profit in the sector expanded from Rs. 266 mn  to Rs. 622 mn.

Another notable performance was seen in the Group’s Eco-Solutions sector which  manufacture and export value added coconut fibre products recorded an increase in turnover from Rs. 3.2 bn  to Rs. 5 bn, and went on to make a vital reversal in its bottom line, posting a profit of Rs. 302 mn against a loss of Rs. 59 mn during the 9 months.

The Group has also earned a series of prestigious accolades over the recent past including being crowned Gold Award winner for Overall Excellence in Financial Reporting at the CA Sri Lanka Annual Report Awards together with a further 11 awards. Additionally, the Group also emerged at the top of the LMD Top 20 rankings for 2018 for the second consecutive year.

The Board of Directors of Hayleys PLC comprises Messrs. Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Lalin Samarawickrama, Ruwan Waidyaratne, Hisham Jamaldeen, Aravinda Perera, Noel Joseph and Jayanthi Dharmasena