Hayleys PLC recorded a 9% increase in its Profits Before Tax (PBT) for the first quarter ending June 2015. PBT for the quarter was recorded at Rs. 1.2billion, up from Rs. 1.1 billion during the same quarter in the previous year.
The Transportation and Logistics Sector sustained its strong growth momentum during the quarter with continued improvements to its benchmark on service delivery and new business innovations. Sector PBT rose 98% to Rs. 372 million in the quarter under review.
The Purification Sector performed commendably despiteadownturn in key markets and the weakening of the Euro, PBT recording a healthy growth to Rs.222 million.
The Hand Protection Sector contributed Rs. 196 million in profits to Group PBT, a reduction for the same period in the previous year.
This was mainly on account of pressure on margins due to strong competition from the manufacturers in the region.
The Agriculture sector was boosted by strong performance due to the AgriInputs and Exports sector compared to the previous year. The Sector PBT increased to Rs. 187 million.
Revenue from the Construction Material sector increased to Rs. 793 million in the first quarter, reflecting continued growth in the construction industry.However, increased competition in the local market eroded profit margins,resulting a dip in PBT.
The Textiles sector continued its upward momentum recording a PBT ofRs 43 million for the quarter consolidating its turnaround.
Revenue from the Plantations sector was affected by continued difficulties in key global markets for tea in the Middle East and Eastern Europe.In this context, the prospect of another wage increase threatens to further increase production costs in the industry.The situation is compounded by a continued global downturn in latex prices, adversely affecting the rubber sector.
Mohan Pandithage, the Chairman and Chief Executive of Hayleys PLC, stated: “I am pleased to note that all sectors continue to make a positive contribution to the Group bottom line. However, the Plantation sector is facing a challenging situation. The tea and rubber industry in Sri Lanka and globally, is in the midst of one of the most prolonged depressions and strategies are being evaluated to overcome these challenges.”
Courtesy: Daily Financial Times 11 August 2015