Hayleys post-tax profit up 56% to Rs 689 m. in 1H 2006-07

The Hayleys Group, has reported solid performance improvements from some key sectors at the half year ending September 30, 2006, enabling the blue chip conglomerate to post strong growth in post tax and attributable profits.

The group said in a statement its pre-tax profit grew 36 per cent to Rs 927.4 million, post-tax profit by 56 per cent to Rs 689.4 million and profit attributable to equity holders by 55 per cent to Rs 367.8 million in the first half of 2006-07. Group turnover for this period grew 21 per cent to Rs 13.25 billion. These results were based on noteworthy contributions to turnover and profit from the Group's Hand Protection, Transportation and Plantation sector businesses, and improvements in the Fibre and Purification sectors which had to contend with challenging conditions in the previous financial year, the statement added.

Hayleys Chairman, Rajan Yatawara said he expects the profit growth seen in the first half to continue over the rest of the year. Referring to the accolades won by the group at this years ‘Best Corporate Citizen Awards’, he said: "This recognition is especially gratifying in the context of our vision - Hayleys to be looked upon as Sri Lanka's corporate inspiration at all times."

Among the main contributors to Hayleys turnover in the period reviewed were Hand Protection with Rs 3.7 billion (an increase of 45 per cent over the first half of last year), Consumer Products with Rs 1.8 billion (up 8 per cent), Purification Products with Rs 1.6 billion (up 44 per cent), Transportation (the Hayleys Advantis Group) with Rs 1.6 billion (up 26 per cent) and Fibre with Rs 1.4 billion (an increase of 12 per cent).

The largest contributions to the group operating profit came from Transportation (Rs 299.7 million) and Hand Protection (Rs 249.1 million). Noteworthy profit growth was reported by Plantations with an increase of 85 per cent and Hand Protection with an increase of 26 per cent. Purification Products which made a loss in the first half of last year, posted an operating profit of Rs 89 million in the review period.