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Sri Lanka’s Hayleys MGT Knitting Mills turns around

Nov 06, 2013 (LBO) - Sri Lanka's Hayleys MGT Knitting Mills Plc, a knit fabric maker said it had turned around with a profit of 164,000 dollars in the September 2013 following a management shake-up and new business. The firm reported profits 0.1 cents (US dollars) per share for the quarter.
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In the six months to September it lost 548,000 US dollars.

"Changes in the top management, clear direction and focus on key results through restructuring, process changes, improvement in quality levels, cost reduction initiatives and productivity improvements were some of the key initiatives supporting the turnaround," chairman Mohan Pandithage told shareholders.

"These changes also contributed towards the buildup of customer confidence during the first quarter of the year, which translated into attracting new business during the 2nd quarter.

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"This trend is expected to continue through the rest of the financial year, leading to positive results."

Revenues rose 47 percent to 16.7 million US dollars and cost of sales rose 47 percent to 15.1 million US dollars allowing the firm to grow gross profits 44 percent to 1.

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6 million US dollars.

Distribution expenses fell 38 percent to 91,232 thousand dollars

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