Hayleys records 32 percent increase in net profit

Hayleys PLC closed its financial year ending March 31, 2014-15 on a high, consolidating the growth momentum generated over past years.

In its filing to the Colombo Stock Exchange, the group reported a 32 percent increase in Profit After Tax (PAT), to close the year with Rs. 4.9 billion.

Sector wise contribution was led by the hand protection sector, showing strong recovery from a challenging period, supported by investments in new production facilities and expansions.

The hand protection sector will add additional capacity to its recently commissioned household glove factory in the Biyagama Zone and will also see a new industrial glove manufacturing facility launching operations in the new financial year in keeping with the continued growth.

The transportation and logistics sector recovered a commendable growth during the year, and continues to increase its benchmark on service delivery and new business innovations.

The purification products sector recorded profit growth despite challenging conditions including elevated raw material prices and a downturn in the gold market.

It is noteworthy that the purification sector is leading a program, together with the other sectors in the company, to provide clean drinking water to some of the villages that are worst affected by the Chronic Kidney Disease (CKD). To date over 5,000 families have access to clean drinking water through this initiative. The textile sector showcased the success of its turnaround program, posting a profit, a robust growth from the loss recorded in the previous year. The sector has initiated a number of projects that are helping to redefine the business and gain recognition as an industry leader and an innovator.

The agriculture sector PBT increased during the financial year, reflecting positive results from a number of new business ventures, including the seaweed cultivation project in the Mannar region, which engages women in the locality to farm and harvest seaweed, providing them with a supplementary income source.

The plantation sector recorded lower profits than in previous years due to the decline in global rubber prices, and economic and political turmoil in key markets in the Middle East and Russia.

However, the industry is hopeful that prices have bottomed out and steps are being taken to optimise productivity in the plantations.

The power and energy sector maintained its positive contribution to the consolidated results, as did the leisure and aviation sector, where earnings were supported by steady growth at The Kingsbury, which is gaining recognition as a much sought after venue for events and receptions.

Construction materials recorded a notable increase in profit, while the fibre sector recorded appreciable growth in earnings during the year, as the results of restructuring are beginning to materialise.Pandithage said, "Our current management team has exhibited strong leadership in sustaining growth and turning around businesses in the last financial year.

The results from the textiles and hand protection among others are particularly noteworthy. We look forward to seeing the teams building on their efforts in the last year and post further growth in the new financial year."