The Hayleys Group pre-tax profit tripled to Rs. 5.52 billion in the first six months of Fiscal Year (FY) 2020/21 compared to the corresponding period of last year, making it the strongest six-month performance in the group’s operating history.
This was driven by solid improvements in the core performance of the group’s export-oriented businesses and proactive efforts on driving cost efficiencies through the “Haysmart” programme. Despite numerous challenges stemming from the outbreak of the Covid-19 pandemic, the group said it ensured continuity of its businesses while operating under strict guidelines of the relevant authorities and ensuring continued value creation to its employees, suppliers, and other stakeholders.
Overall profitability was also supported by a near 15% decline in finance costs, as the group successfully negotiated favourable terms with banks to maximise the benefit of reductions in market interest rates. Resultantly, the group’s pre-tax profit more than tripled to Rs. 5.52 billion while profit after tax amounted to Rs. 3.82 billion compared to Rs. 640.86 million the previous year. Strong earnings of key businesses led to a significant increase in the share prices and trading activity of Haycarb PLC, Dipped Products PLC, Singer (Sri Lanka) PLC, and Hayleys PLC signalling positive investor sentiments and strong upside potential of these shares.
“We anticipate our export-oriented businesses to maintain the current growth momentum and are confident of delivering significant earnings growth in the ensuing quarters,” said Hayleys PLC Chairman and Chief Executive Mohan Pandithage. He added: “Managing our supply side along with our passionate, dedicated, and disciplined workforce ensured we delivered in this very challenging environment. We are also mindful of the risks arising from the recent resurgence in Covid-19 infections and will continue to adhere to stringent health and safety guidelines as prescribed by relevant health authorities.”
Earnings before interest, tax, depreciation, and amortisation (EBITDA) recorded strong growth of 38% to Rs. 13.32 billion. Improved profitability in the purification and hand protection sectors was underpinned by capacity expansions, better product mix, effective supply chain management, and ongoing cost efficiencies. The group’s consumer and retail business recorded a growth, supported by an aggressive sales drive and ongoing cost efficiencies. The agriculture and textiles sectors also delivered strong performances, while the plantation sector’s profitability was upheld by significant growth in the tea exports arm. The leisure sector continued to be in the red and Hayleys said proactive measures have been implemented to reduce overheads and optimise resource utilisation. Meanwhile, consolidated Earnings before interest and tax (EBIT) increased by 39% to Rs. 9.83 billion during the year.
The Board of Directors of Hayleys PLC comprises Chairman and Chief Executive Mohan Pandithage, Co-Chairman Dhammika Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Ruwan Waidyaratne, Hisham Jamaldeen, Aravinda Perera, Jayanthi Dharmasena, Rohan Karr, and Gamini Gunaratne.
Overall profitability was also supported by a near 15% decline in finance costs, as the group successfully negotiated favourable terms with banks to maximise the benefit of reductions in market interest rates. Resultantly, the group’s pre-tax profit more than tripled to Rs. 5.52 billion while profit after tax amounted to Rs. 3.82 billion compared to Rs. 640.86 million the previous year. Strong earnings of key businesses led to a significant increase in the share prices and trading activity of Haycarb PLC, Dipped Products PLC, Singer (Sri Lanka) PLC, and Hayleys PLC signalling positive investor sentiments and strong upside potential of these shares.
“We anticipate our export-oriented businesses to maintain the current growth momentum and are confident of delivering significant earnings growth in the ensuing quarters,” said Hayleys PLC Chairman and Chief Executive Mohan Pandithage. He added: “Managing our supply side along with our passionate, dedicated, and disciplined workforce ensured we delivered in this very challenging environment. We are also mindful of the risks arising from the recent resurgence in Covid-19 infections and will continue to adhere to stringent health and safety guidelines as prescribed by relevant health authorities.”
Earnings before interest, tax, depreciation, and amortisation (EBITDA) recorded strong growth of 38% to Rs. 13.32 billion. Improved profitability in the purification and hand protection sectors was underpinned by capacity expansions, better product mix, effective supply chain management, and ongoing cost efficiencies. The group’s consumer and retail business recorded a growth, supported by an aggressive sales drive and ongoing cost efficiencies. The agriculture and textiles sectors also delivered strong performances, while the plantation sector’s profitability was upheld by significant growth in the tea exports arm. The leisure sector continued to be in the red and Hayleys said proactive measures have been implemented to reduce overheads and optimise resource utilisation. Meanwhile, consolidated Earnings before interest and tax (EBIT) increased by 39% to Rs. 9.83 billion during the year.
The Board of Directors of Hayleys PLC comprises Chairman and Chief Executive Mohan Pandithage, Co-Chairman Dhammika Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Ruwan Waidyaratne, Hisham Jamaldeen, Aravinda Perera, Jayanthi Dharmasena, Rohan Karr, and Gamini Gunaratne.