Hayleys profits up in Q1
View(s):Hayleys PLC recorded a 9 per cent increase in pre-tax profits (PBT) for the quarter ending June at Rs. 1.2 billion, the company said this week. The Transportation and Logistics Sector sustained its strong growth momentum during the quarter with continued improvements to its benchmark on service delivery and new business innovations with PBT from this sector rising by 98 per cent to Rs. 372 millin.
The Purification sector performed well with PBT at Rs. 222 million despite a downturn in key markets and the weakening of the Euro. The Hand Protection Sector contributed Rs. 196 million in profits to Group PBT, down however from the same period in the previous year, owing to pressure on margins due to strong competition from the manufacturers in the region.
Agriculture showed a PBT of Rs. 187 million, boosted by strong performance due to the Agri inputs and exports. Revenue from the plantations 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. The situation is compounded by a continued global downturn in latex prices, adversely affecting the rubber sector,” the release said.