Backed by stronger performance of the transportation and logistics sector the Hayleys Group recorded a 21% Year-on-Year (YoY) improvement in top line up to Rs. 29.2 billion during the three months June 30, 2017 (1QFY18).
Despite the improved revenue, it was a challenging quarter for the Group, during which Profits Before Tax (PBT) contracted 61% YoY down to Rs 407.7 million .
“Despite lower profits during the first quarter, we remain confident that group profits will rebound over the coming quarters as multiple strategic investments made over the recent past begin to generate returns and contribute positively towards group profitability.”
“In particular, we note with satisfaction the consistently positive growth displayed by our transportation and logistics segment, represented by Hayleys Advantis, and the positive turn-around recorded within the plantations sector as a result of favorable market conditions,” Hayleys Chairman and Chief Executive Mohan Pandithage said.
The group’s transportation and logistics segment generated revenue of Rs7.24 billion during the quarter. Operating Profits during the quarter rose to Rs. 430.9 million.
Turnover in the plantation sector increased to Rs 3.49 billion in 1Q18 while operating profits improved up to Rs. 99.4 million on the back of stronger tea prices at the Colombo Tea Auction during the period under review.
Notably, following the completion of one of Sri Lanka’s largest solar power plants in Welikande, the group’s power and energy sector also recorded notable improvements in top and bottom line performance, generating Rs 404.9 million in revenue, while operating profits within the segment rose to Rs 229.5 million.
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