Hayleys revenue up 34-pct YoY to Rs.219Bn in FY 18/19

hayleys

Mohan Pandithage, Chairman / Chief Executive & Dhammika Perera, Co-Chairman Hayleys PLC

May 22, 2019 (LBO) – Sri Lanka’s Hayleys PLC, group revenue expanded by 34 percent yoy to 219 billion rupees while operating profit before interest increased by 40 percent yoy to 15.9 billion rupees in the financial year ended 31st March 2019 (FY18/19).

The group earnings before interest, tax, depreciation and amortization (EBITDA) for FY 18/19 has improved to 21.3 billion rupees from 15.8 billion rupees while the finance cost has increased from 5.9
billion rupees to 10.5 billion rupees.

The group’s profit before tax (PBT) reflect a 5 percent yoy contraction to 5.5
billion rupees.

In terms of revenue generation, the group’s consumer and retail segment, which includes Singer (Sri Lanka) PLC recorded  a turnover of  67.2
billion rupees compared with 35.9 billion rupees in the  previous year.

The transportation and logistics segment generated 45.3 billion rupees in turnover, from 35.6 billion rupees in FY17/18.

The purification segment achieved 20.9 billion rupees in turnover, as compared with a previous 15.5 billion rupees , while the hand protection segment recorded an increase in turnover from 15.9 billion rupees to 17.1
billion rupees .

The agriculture segment posted a turnover of 14.9 billion rupees , from 13.9
billion rupees in FY17/18.

In terms of segment results, the group’s consumer and retail segment made a contribution of 4.1 billion rupees to group operating profits despite margins being pressured as a result of import restrictions which came into effect during the year in review and a negative impact on the finance costs.

The group’s transportation and logistics segment posted operating profits of 3.6 billion rupees, over a previous 2.9 billion rupees.

The agriculture sector reported an improved operating profit of 1.71
billion rupees, against 1.15 billion rupees in FY17/18.

Meanwhile, the purification segment’s operating profits grew from 1.1 billion rupees to 1.5 billion rupees while hand protection operating profits posted an  improvement from 471 million rupees to 834 million rupees.

The group’s Eco Solutions segment was successful in reversing an operating loss of 16 million rupees in FY 17/18 to an outstanding 440 million rupees operating profit in FY18/19.

Similar improvements were also demonstrated by the group’s textiles segment, which grew operating profits of 142 million rupees to 465
million rupees while the group’s leisure sector posted an operating profit of 665 million rupees, against 343 million rupees in FY17/18.

The group’s tea export business, the Mabroc Brand helped the plantations sector which is facing challenges from rising costs of production arising from increased wages in the final quarter of the year. The plantations sector generated revenues of 13 billion rupees, against a previous 12.6 billion rupees and contained its reduction in operating profits to 737 million, as compared with 887 million in FY17/18.

However, increased net finance costs constrained bottom line performance at Hayleys as costs increased by 77% YoY to Rs. 10.5 bn in FY18/19, largely as a result of rising interest costs, consolidation of finance costs of Singer ( Sri Lanka) PLC and acquisition cost of recently acquired businesses.

“As one of Sri Lanka’s single largest sources of value added exports, the Hayleys Group continues to be a major contributor to the Sri Lanka’s economy. Moving forward, the group will continue to take strategic and focused measures aimed at rationalizing   finances , however as a group, we are ready for a challenging macroeconomic environment,” Hayleys PLC chairman and chief executive Mohan Pandithage stated.

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, Ruwan Waidyaratne, Hisham  Jamaldeen, Aravinda Perera, Noel Joseph and Jayanthi Dharmasena.