Hayleys posts best PAT of Rs. 8.20 bn | Daily News
Foreign currency earnings exceed US$ 443 mn

Hayleys posts best PAT of Rs. 8.20 bn

Chairman and Chief Executive Mohan Pandithage and Co-Chairman, Dhammika Perera
Chairman and Chief Executive Mohan Pandithage and Co-Chairman, Dhammika Perera

The Hayleys Group maintained its remarkable growth momentum in the first nine months of FY 2020/21, delivering its highest ever pre-tax profit of Rs.11.51 billion which represents a tripling of profitability compared to the corresponding period of last year.

The performance reflects exceptional growth in the core performance of the Group’s export-oriented businesses, relentless focus on cost efficiencies through the ‘Haysmart’ program and commendable improvements in the Retail and Construction Materials sectors.

The period under review reflects the strongest quarterly and cumulative nine-month performance in the Group’s operating history and demonstrates its adaptability and responsiveness in navigating complexities stemming from the operating landscape.

The Group’s revenue increased by 7% to Rs.171.90 billion in the nine months driven by continued growth in the Hand Protection, Purification, Agriculture and Textiles sectors. Gross profit growth amounted to 14% and reflects improvements in core profitability-primarily in the export-oriented businesses.

Meanwhile, the Group continued to achieve cost efficiencies with consolidated Administrative expenses declining by 4% during the period, reflecting the successes of Haysmart- the Group’s holistic cost rationalisation programme. The Earnings before interest, tax, depreciation, and amortisation (EBITDA) recorded strong growth of 38% to Rs. 22.60 billion.

Agriculture and Construction Materials sectors also recorded commendable growth while Consumer & Retail delivered its highest-ever quarterly profitability supported by targeted sales campaigns, robust demand for IT products and effective margin management.

Despite continued losses in the Leisure Sector, the Group’s Consolidated Earnings before Interest and Tax (EBIT) increased by 40% to Rs.17.28 billion during the nine-month period. Resultantly, pre-tax profit nearly tripled to Rs. 11.51 billion while profit-after-tax amounted to Rs. 8.20 billion compared to Rs.2.21 billion in the corresponding period of last year.

“While we expect our export-oriented businesses to maintain their current growth momentum and deliver continued earnings growth, we are also optimistic about our domestic businesses, given the resumption of economic activity and anticipated revival of Sri Lanka’s economy,” said Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.

“We commend the Government for their efforts in creating a conducive environment for businesses to continue operations, despite unprecedented challenges posed by the COVID-19 pandemic.”