Hayleys Group delivers profit growth in a challenging year

The Hayleys Group’s geographical and sectoral diversity enabled it to deliver earnings growth in an extremely challenging year, with profit-after-tax increasing by 5 per cent y-o-y and profit attributable to equity holders growing by 40 per cent in 2019/2020, however on a decline in turnover. 
In a media release on Thursday, the group said its turnover declined by 4 per cent to Rs.210.31 billion in 2019/20, primarily due to the terror attacks in April 2019 as well as the COVID-19 pandemic in the latter part of the financial year. The group’s core performance improved during the year with EBITDA and Operating Profit increasing by a respective 12% and 3%. 
Concerted efforts towards driving operational efficiencies and lean initiatives are reflected in the 4% reduction in Group Administrative expenses and widening of the operating profit margin to 8%, from 7% the previous year, it said. 
Consolidated finance costs remained relatively unchanged at Rs.13.05 billion during the year. Group pre-tax profit recorded an increase of 1% to Rs.5.50 billion while profit after tax grew by 5% to Rs 2.89 billion.  Meanwhile, the group recorded consistent balance sheet expansion with total assets increasing by 7% to Rs.248.31 billion as at end-March 2020. 
“While disruptions to operations in the aftermath of the pandemic are anticipated to impact group performance over the short-term, we are confident that the resilience of the export businesses will support earnings growth,” said Mohan Pandithage, Chairman of Hayleys PLC. “The Purification and Hand Protection sectors are poised for expansion with strong order books while the gradual easing of restrictions in the country and the resurgence of economic activity is expected to support the recovery of the other sectors over the medium-term. I would like to place on record my sincere appreciation to all our employees, who extended their fullest support and commitment to the group during these challenging times. I would also like to thank our customers, suppliers, business partners and other stakeholders for their continued patronage and confidence,” he added.