|
Hayleys records highest ever profits in its 132 year history
Strategic realignment, strong performances in key sectors and dramatic turnaround of underperforming businesses spur Blue Chip conglomerate’s strong comeback
Sri Lanka’s Hayleys Group has achieved exponential growth in all key performance indicators in 2009-10 establishing record figures for revenue, profit and investment in a remarkable year of milestones.
According to figures released to the Colombo Stock Exchange, the blue chip conglomerate’s profit before tax more than doubled to Rs 3,351 million in the 12 months ending 31 st March 2010, while profit after tax tripled to Rs 2,637 million.
Profit attributable to equity holders of the company grew 5.7 times (471 percent) to Rs 1,775 million. Consolidated turnover, at Rs 38 billion, reflected a growth of 18 percent.
“The year also saw the single largest investment in the 132 year history of the company -- the purchase of a controlling stake in Ceylon Continental Hotel, resulting in total investment in subsidiaries doubling in the year reviewed, and initiatives to rationalise the Group’s businesses and strategies yielding spectacular results,” Hayleys PLC Chairman Mohan Pandithage said.
“Similarly strategic investments were made in the plantation sector subsequent to the balance sheet date with the acquisition of a further one third shareholding of Hayleys Plantations Limited, thereby acquiring effective control of Talawakelle Tea Estates PLC.”
He said key businesses in Global Markets & Manufacturing significantly improved their performances in 2009-10, while the previously loss-making Consumer Products and Fibre sectors recorded an impressive turnaround.
“This result represents the combined impact of internal initiatives to re-balance our portfolio and create an internal dynamism among employees at all levels, and sector-specific efforts to make businesses exposed to the global economic downturn leaner and more competitive,” Mr. Pandithage said.
The Group’s Earnings per Share increased from Rs 4.15 a year earlier to Rs 23.67 for the period under review, an improvement of 471 per cent.
The Board of Directors of Hayleys PLC has proposed the payment of a final dividend of Rs 2/- per share making the total dividend for the year Rs.4/- per share.
Among the principal contributors to Group performance, Hand Protection accounted for Rs 9.4 billion in turnover and Rs 835million in operating profit; Purification Products Rs 5.0 billion and Rs 697 million in turnover and operating profit respectively and Agri Inputs Rs 4.5 billion in turnover and Rs 389 million in operating profit.
The Textiles sector represented by Hayleys MGT Knitting Mills, in which Hayleys now owns over a 60 percent stake, was accounted for as a subsidiary business from July 2009 onwards and contributed Rs 3.8 billion to turnover and Rs 353 million to operating profit. The Fibre sector nearly doubled its operating profit to Rs 125 million, and Agri Products converted a loss of Rs 22 million in the previous year to an operating profit of Rs 147 million.
Transportation, helped by a strong fourth quarter reported an operating profit of Rs 473 million on a turnover of Rs 3.5 billion. Consumer Products also contributed Rs 3.5 billion to turnover and made an operating profit of Rs 179 million, an improvement of 153 per cent over the previous year.
Only the Plantation sector posted a lower result due to a mandatory wage increase of over 40 per cent in the year under review and crop losses due to bad weather. However, this sector began turning around in the third quarter of the year and continues to do well in the current financial year, Mr. Pandithage noted.
Among other highlights of the year was the Group’s partnership with the United States Agency for International Development (USAID) to develop commercial agriculture in the Eastern Province. The project which has a strong CSR element to it, won wide international recognition when it received USAID’s Global Development Alliance Award.
Commenting on the outlook for the year ahead, Mr. Pandithage said the momentum generated by the initiatives of 2009-10 would continue to serve the Group well. “We are now faced with a new challenge -- that of meeting raised expectations while striving extremely hard to maintain our export competitiveness in a challenging market. We are confident that the new culture and strong strategic focus of our businesses will engender more growth,” he said.
Established in 1878 and rated a Business-to-Business (B2B) Superbrand among Sri Lanka’s diversified conglomerates, the Hayleys Group employs more than 30,000 people, and accounts for 2.3 per cent of Sri Lanka’s export income.
The Board of Directors of Hayleys PLC comprises Messrs A. M. Pandithage (Chairman/CEO), L. K. B. Godamunne, J. D. Bandaranayake, M. R. Zaheed, A. M. Senaratna, J. A. G. Anandarajah, T. L. F. Jayasekera, K. D. D. Perera, W.D.N.H. Perera and S. C. Ganegoda.
|
