Hayleys Group reports 22% growth
Hayleys PLC, one of Sri Lanka's leading conglomerates, in a filing to
the Colombo Stock Exchange reported resilient growth for the first half
of the financial year 2013/14.

Deputy Chairman
Dhammika Perera |
Despite trying operational scenarios constraining performance of some
key business sectors, the Group maintained an upward growth trend in
revenue and profitability for 1H, 2013/14.
The Hayleys Group posted a 22% growth in profitability, pushing Group
PBT to Rs. 2.5 billion. Group Revenue expanded by 11% in the first half
of the financial year.
Of the Group's two largest manufacturing sectors, the Purification
sector posted operating profits of Rs. 663.3 million despite contracted
revenue stemming from a global downturn in the gold carbon industry.
However, enhanced operational efficiencies and targeted high margin
segments helped support the bottom line of the sector. The Hand
Protection sector experienced trying operational circumstances during
the latter part of the period under review, since the management was
compelled to suspend operations at the factory at Rathupaswala. However,
the sector continued to remain profitable, recording an operating profit
of Rs. 494.6 million for the first half of the financial year.
The Construction Materials sector which witnessed a profit expansion
of 38%, supported by stable world market prices for raw materials, saw
strong growth in demand from the local construction sector.
Operating profits in the Agriculture sector rose by 52% due to
conducive weather conditions as opposed to the corresponding period in
the previous financial year. However, the Plantations sector was
negatively affected by adverse weather conditions in key plantation
areas during the second quarter.
Wage hikes earlier in the year further added to cost escalations.
Nevertheless, improved tea prices supported the sector, positioning it
as a significant contributor to Group earnings.
Renewable energy led strong profit growth in the Power and Energy
sector. Industrial Inputs, on the other hand, experienced slackened
demand in certain key industrial sectors such as Dairy, Rubber and
Paint.
Consumer Products posted a 39% growth in profitability, as the
sector's product portfolio was expanded.
The Transportation and Logistics sector continued to record strong
earnings as operating profit grew13%. The future outlook for the sector
is positive with policy reforms and infrastructure development in the
port sector supporting business growth.
The Group's Leisure and Aviation sector made a sound contribution
spurred by positive operating profits recorded by The Kingsbury despite
a more subdued earnings contribution by the resorts sub-sector
represented by the Amaya Group. However, ongoing product development and
expansions at key Amaya hotels is expected to support growth in the
latter half of the financial year.
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