Hayleys posts Rs 260m PAT, 1Q19 | Sunday Observer

Hayleys posts Rs 260m PAT, 1Q19

Hayleys PLC generated strong top-line performance across all of its key business verticals resulting in a 74% Year-on-Year (YoY) increase in revenue up to Rs. 50.6 billion during the quarter ended June 30, 2018 (1Q19).

The Group incurred an increased finance cost of Rs. 2.7 billion, mainly due to the inclusion of Singer Group and the financing costs of recent acquisitions. However, despite this high finance cost the Group Profit Before Tax (PBT) expanded by 96% YoY up to Rs. 798 million while Profit After Tax (PAT) increased to Rs. 260 million.

The Group’s first quarter results reflect a significant expansion in turnover led by its Consumer and Retail, Transportation and Logistics and Manufacturing segments.

Revenue within the Consumer and Retail segment expanded substantially from Rs. 1.2 billion to Rs. 16.6 billion in 1Q19, bolstered by the contributions of Singer (Sri Lanka) Group which was acquired by Hayleys at end of 2Q18, generating Rs. 1.3 billion in operating profits.

Hayleys Chairman and Chief Executive, Mohan Pandithage said, “As we celebrate 140 years of Hayleys in Sri Lanka, our organisation continues to chart an impressive trajectory into the first quarter of the new financial year.

“Our significant investments towards the acquisition of Singer (Sri Lanka) are already yielding valuable returns for the Group and we anticipate further improvements from this sector as we begin to generate greater synergy with the Hayleys brand moving forward.

“Combined with an impressive resurgence from our manufacturing sector and improvement in top line performance across all our core businesses, the Hayleys Group is poised for a year of growth and innovation,” he said. The Group’s Transportation and Logistics segment, supported by its recent acquisitions, posted a turnover of Rs. 10.6 billion, as compared with Rs. 7.2 billion, leading to an operating profit of Rs. 663 million, as compared with a previous Rs. 431 million.

Turnover in the Group’s Purification Products segment expanded from Rs. 3.3 billion to Rs. 4.3 billion while operating profits increased from Rs. 161 million to Rs. 242 million.

The Group’s Hand Protection segment posted outstanding improvements in top and bottom line performance, with revenue expanding to Rs. 4.1 billion, against a previous Rs. 3.9 billion and operating profits rising sharply to Rs. 284 million, as compared with Rs. 39 million in 1Q18.

Eco Solutions turnover increased from Rs. 1.1 billion to Rs. 1.5 billion, while operating profits expanded substantially from Rs. 46 million to Rs. 87 million during the quarter in review.

The Group’s Agriculture Sector also recorded an improved performance with turnover expanding to Rs. 2.9 billion, as compared with Rs. 2.5 billion, while operating profits improving to Rs.224 million from Rs.83 million in the corresponding period. 

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