Hayleys turnover up by 20% YOY to Rs. 62.4 billion in 1HFY17/18
View(s):Fuelled by topline growth across all of its key business segments, Hayleys PLC posted a 20 per cent Year-on-Year (YoY) increase in turnover up to Rs. 62.4 billion in the six months ending September 2017.
The group, in a media release, said it has continuously infused higher levels of investment into key business segments with a view to enhancing growth potential over the medium-long term. Group profit before tax for the period stood at Rs. 1.4 billion in 1HFY17/18.
“Hayleys Group achieved significant benchmarks during the period in review, particularly in relation to its recent acquisition of a 61.73 per cent of the issued share capital of Singer ( Sri Lanka) PLC for a consideration of Rs.10.9 billion, making it the single largest acquisition for a listed company in Sri Lanka in recent times,” the release said.
The acquisition was partly funded by state banks National Savings Bank and People’s Bank, according to stock market analysts
Commenting on the Group’s performance over the first half, Hayleys PLC Chairman and Chief Executive, Mohan Pandithage said: “The group was able to achieve several significant milestones during the first half of the financial year, driven by aggressive investments that have positioned Hayleys Group for strong top and bottom line growth moving forward. Having finalised our acquisition of Singer Sri Lanka PLC, the Hayleys Group is now moving to expand rapidly into the retail sector leveraging on the time-tested expertise of both companies. We are confident that the acquisition of Singer (Sri Lanka) PLC together with the recent major investments that the Hayleys Group has made into leisure and transport and logistics sectors are anticipated to yield significantly improved results for the group in the future.”
Turnover in the group’s Transportation and Logistics segment rose from Rs. 11.1 billion up to Rs. 16.4 billion while operating profits rose from Rs. 631 million up to Rs. 1.1 billion during 1H17/18.
Poor weather conditions hampered agricultural production, leading to a reduced turnover and operating profits, which ended the half year at Rs. 5.5 billion, and Rs. 233 million respectively.
Increased raw material prices also negatively affected the group’s Hand Protection and Purification Products segments. Leisure sector operating profits reduced to Rs. 36 million despite relatively stable turnover of Rs.2.6 billion, largely as a result of investments made towards the refurbishment of key hospitality properties within the group.