Aug 09, 2019 (LBO) - Hayleys PLC, demonstrated resilience in challenging conditions to record an improvement in turnover and operating performance during the first quarter of the 2019/20 financial year.
The Group’s turnover grew by 4 percent to 52.6 billion rupees during the period, upheld mainly by the top line growth in Hand Protection (+10%), Purification (+24%) and Textiles (+41%) sectors .
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) also increased by 5 percent to 4.6 billion rupees during the period while consolidated operating profit grew by 4 percent to 3.3 billion rupees.
High finance cost resulted in decline of the consolidated pre-tax profit to 285 million rupees.
In terms of segmental operating performance, textiles (+327%), purification (+84%) and eco solutions (+32%) were the most significant contributors to profit growth. consumer & retail, transportation & logistics, power & energy, hand protection and agriculture sectors have also remained major contributors to the consolidated operating profit as in the previous periods.
The performance of the Leisure Sector was significantly impacted by the April 21st terrorist attack which directly affected The Kingsbury Hotel and the subsequent decline in tourist arrivals into Sri Lanka due to adverse travel advisories.
Resultantly, the leisure sector generated an operating loss of 364 million rupees, negatively impacting consolidated profitability.
The construction materials sector recorded a 51 percent decline in operating profit reflecting the slower than expected recovery in the country’s construction sector.
Meanwhile, subdued consumer sentiments affected the performance of the group’s consumer & retail sector which saw operating profits declining by 13 percent during the quarter.
“The diversity in the Group’s operations continue to enable Hayleys to withstand challenges stemming from the operating landscape” said Mohan Pandithage, chairman and chief executive of Hayleys PLC.
Further, he stated “We are encouraged by the faster than expected recovery of the country’s tourism sector and are hopeful of a strong winter season this year. We also anticipate interest rates to decline over the short-to-medium term, supporting earnings expansion.”