Nov 13, 2018 (LBO) – Hayleys PLC, a diversified conglomerate posted a 65 percent Year-on-Year (YoY) increase in turnover up to 103 billion rupees for the six months period ending 30 September 2018.
The Group posted strong operating profits which expanded to 6.8 billion rupees from 3.2 billion rupees in the corresponding period.
The Group incurred an increased net finance cost of 5 billion rupees, mainly due to the inclusion of Singer Group, financing costs of the recent acquisitions and exchange rate fluctuation.
However, the Group Profit Before Tax (PBT) for the period improved to 1.8 billion rupees from 1.4 billion rupees in 1HFY18/19 while Profit After Tax (PAT) also improved to 769 million rupees from 719 million rupees.
All segments except for Plantations have contributed to the healthy expansion in turnover for the Group during the period in review. Revenue within the Consumer & Retail segment expanded substantially from 2.7 billion rupees to 31.5 billion rupees in 1HFY18/19, bolstered by the contributions of Singer (Sri Lanka) Group which were acquired by Hayleys at end of 2Q18, generating 2.4 billion rupees in operating profits.
Commenting on the Group’s performance over the first half, Hayleys PLC Chairman and Chief Executive, Mohan Pandithage said: “The Group was able to achieve significant growth driven by the investments we have made towards the acquisition of Singer (Sri Lanka),where the Consumer & Retail sector has spearheaded the improvement of the topline during 1HFY18/19.”
“While anticipating further improvement of results from this sector , Group’s continuous investments and efforts to improve quality and efficiency through well-placed processes across every business sector will yield greater results for Hayleys PLC in the future.”
During the first half, the Group’s Transportation & Logistics segment, supported by its recent acquisitions, posted a turnover of Rs. 22.7 billion, as compared with Rs. 16.4 billion in the previous period, leading to an operating profit of Rs. 1.4 billion, from a previous Rs. 1.1 billion.
Turnover in the Group’s Eco Solutions segment rose from Rs. 2.1 billion to Rs. 3.4 billion while operating profits of the sector rose significantly from Rs. 70 million to Rs. 193 million. Meanwhile, turnover in the Group’s Purification Products segment expanded from Rs. 7.1 billion to Rs. 9 billion while operating profits increased from Rs. 358 million to Rs. 614 million. Similarly, the Group’s Hand Protection segment posted revenue of Rs. 8.4 billion, against a previous Rs. 8 billion and operating profits rising significantly to Rs. 521million, as compared with Rs. 98 million in 1HFY18/19.
The Agriculture sector’s turnover expanded to Rs. 5.8 billion, as compared with Rs. 5.5 billion, while operating profits improving to Rs.462 million from Rs.234 million in the corresponding period.Following a series of climate-impacted yields, Sri Lanka’s Agricultural sector is forecast to rebound in the Maha season with the timely rains experienced in the past few weeks which augurs well for the Hayleys Agriculture sector.
Poor weather conditions and world market prices have hampered the Plantations sector, resulting in reduced turnover and operating profits, which ended the first half at Rs. 6.4 billion, and Rs. 29 million respectively.
Hayleys Global Beverages (Pvt) Ltd (HGBL), a unit of diversified conglomerate Hayleys PLC announced a joint venture partnership with Germany’s botanicals giant Martin Bauer Group (BMG). With the demand for tea and herbal ingredients forecasted to grow, this collaboration is expected to harness the immense potential of HGBL for the Group.