Hayleys Group records 41% profit growth in Q 3
View(s):The Hayleys Group, Sri Lanka’s most diversified conglomerate, says it has demonstrated “strong resilience in the 3rd quarter of 2019/20 to achieve a 41 per cent growth in profit-after-tax”.
The robust performance during the quarter enabled the group to offset the subdued performance of the previous quarters, with the group’s profit-after-tax increasing by 18 per cent on a cumulative basis during the nine months ending December 2019. Profitability was upheld by broad-based improvements in the operating performance of the group’s export-oriented businesses, according to a company announcement.
Turnover declined marginally to Rs.160.6 billion in nine months, mainly reflecting reductions in the Leisure, Transportation and Consumer and Retail segments while other sectors including Purification, Textiles, Hand Protection and Industry Inputs recorded top line growth. Improvements in the core performance of key sectors, particularly across export-oriented business lines is reflected in the 9 per cent increase in Consolidated Earnings before interest, tax, depreciation and amortisation (EBITDA) to Rs.16.3 billion during the period. Meanwhile, consolidated operating profit also recorded an increase of 9 per cent to Rs.12.3 billion, driven by Purification (+81 per cent), Textiles (+83 per cent), Hand Protection (+ per cent) and Industry Inputs (4-fold increase) among others. The Leisure, Retail, Construction Materials sectors continue to be adversely impacted by challenges stemming from the operating environment while the growth in group operating expenses was contained at 4 per cent reflecting ongoing investments in lean initiatives and process efficiencies, it said.
“The recently announced tax concessions are likely to result in improved consumer and investor sentiments presenting upside potential for the group. Additionally, we are confident that the continued growth of our export businesses, coupled with the reduction in lending rates will support the group’s earnings growth in the coming months,” said Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.