Hayleys profits up in Q1

Hayleys PLC recorded a 9 percent increase in Profits Before Tax (PBT) for the first quarter ended June, 2015. PBT for the quarter was Rs. 1.2 billion, up from Rs. 1.1 billion during the corresponding quarter in the previous year.

The Transportation and Logistics Sector sustained its strong growth momentum with continued improvements to its benchmark on service delivery and new business innovations. Sector PBT rose 98 percent to Rs. 372 million.The Purification Sector performed commendably despite a downturn in key markets and the weakening of the Euro, PBT recording a healthy growth to Rs. 222 million.

The Hand Protection Sector contributed Rs. 196 million in profits to Group PBT, a reduction compared to the corresponding period in the previous year. This was mainly on account of pressure on margins due to strong competition from the manufacturers in the region.The Agriculture sector was boosted by strong performance due to AgriInputs and Exports compared to the previous year. The Sector PBT increased to Rs. 187 million.

Revenue from the Construction Material sector increased to Rs. 793 million in the first quarter, reflecting continued growth in the construction industry. However, increased competition in the local market eroded profit margins, resulting in a dip in PBT.

The Textiles sector continued its upward momentum recording a PBT of Rs 43 million for the quarter consolidating its turnaround. Revenue from the Plantations sector was affected by continued difficulties in key global markets for tea in the Middle East and Eastern Europe. In this context, the prospect of another wage increase threatens to further increase production costs in the industry.