Hayleys turnover crosses US$ 1b mark | Sunday Observer

Hayleys turnover crosses US$ 1b mark

Mohan Pandithage and Dhammika Perera
Mohan Pandithage and Dhammika Perera

Building on a strong momentum gathered over the final quarter of FY 2017/18, Hayleys PLC announced a record breaking top-line performance as revenue expanded by 47% year-on-year to Rs. 163.2 billion during the 12 months to March 31, 2018.

Supported by addition of six months of operations from its recently acquired subsidiary, Singer (Sri Lanka) PLC, the conclusion of the financial year marked two important milestones for the Hayleys Group, as it became the first listed entity in the country to surpass annual turnover of US$ 1 billion while celebrating its 140th year of business in Sri Lanka.

The Hayleys Group made numerous bold new investments across the sectors which the diversified conglomerate operates in, to reposition its subsidiaries to capitalise on new growth opportunities over the medium-long term.

The Group posted strong operating profits which expanded by 18% YoY to Rs.11.4 billion. However, increased borrowings, combined with the prevalence of higher interest rate conditions throughout the financial year resulted in net finance costs increasing to Rs. 5.93 billion, leading to a reduction in profit before tax (PBT) to Rs. 5.76 billion during the period in review

Hayleys PLC Chairman and Chief Executive, Mohan Pandithage said,

“This is truly a remarkable milestone that serves to highlight the scale of our operations and the vital contributions that Hayleys continues to make as an engine of growth and innovation in the Sri Lankan economy.

“The past year bore witness to several bold new investments across Hayleys that are designed to place the group on a stable but aggressive growth trajectory over the medium-long term. Nevertheless, we remain cognizant of the higher finance costs arising from increased investments over the past year.”

Pandithage made note of the encouraging performance of the Hayleys group over the final quarter of FY18, during which time, turnover expanded by a significant 74% YoY up to Rs. 50.9 billion while operating profits surged up 33% YoY to Rs. 4.7 billion.

Leading segmental performance during the year was the group’s transportation and logistics business which posted substantially improved revenue and operating profits of Rs. 35.7 billion, and Rs. 2.95 billion respectively.

Increased raw material costs hampered profitability within the group’s purification products and hand protection segments both of which posted improved turnover but weaker operating profits.

The Purification segment recorded a turnover of Rs.15.5 billion with an operating profit of Rs.1.1billion while hand protection segment revenue was Rs. 15.9 billion while operating profits reduced to Rs. 464 million.

Boosted by the introduction of new revenue from Singer, the group’s consumer products segment also posted impressive growth in turnover, closing the year with revenue of Rs. 35.9 billion while operating profits increased to Rs. 2 billion during the period in review.

The Group’s Agriculture and Plantations segments, though affected by weather in the earlier part of the financial year, contributed substantially towards group revenue and profitability