Hayleys Exports PLC said the company recorded a loss due to increased costs of raw material, energy and labour.“The high inflation experienced in the first nine months without any change in the exchange rate seriously impacted on profitability. Our range of products became uncompetitive vis-à-vis similar products from neighboring countries who had devalued their currencies,” N.G. Wickramaratne, Chairman of the company has said in his annual statement.
According to him, the turnover which dropped to Rs. 476 million last year compared to 2007’s Rs 585 million was because the company suffered as a result of the global downturn. “Machine Twisted Fibre, one of the major products handled, declined in the face of lower demand from the automobile industry in Europe.
Delays in the progress of infrastructure projects in the developed world hampered growth in the bio-engineering range,” he has said, noting that the growth in Bonterra's (a subsidiary) sales continued during the year, with profit increasing for the sixth consecutive year. He said that an increase in the coconut crop is forecast for the current year. |
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