Healthy performances by the Agri Inputs, Plantations, Purification and Transportation sectors helped the Hayleys Group to post turnover of Rs 38.5 billion and pre-tax profit of Rs 1.5 billion in the nine months ended 31st December 2010, the company said.
It said revenue grew by 42 % over the corresponding period of last year, with all key business sectors except Agri Products recording healthy top line growth.
The inclusion of Talawakelle Tea Estates PLC, Hotel Services (Ceylon) PLC, Hunas Falls Hotels PLC, the Alumex Group and Hayleys MGT Knitting Mills PLC, as subsidiaries of Hayleys PLC during the review period also contributed to the increased turnover.
Key contributors to the operating profit were Agri Inputs, Purification, Hand Protection, Transportation and Plantation sectors.
An operational loss of Rs 76 million by companies in the Fibre sector on account of raw material shortages, and an operational loss of Rs 480 million from Hayleys MGT Knitting Mills, for which additional provisioning was required for inventories and receivables in line with announcements made to the CSE, contributed negatively to the Group’s pre-tax profit of Rs 1.5 billion, the statement said.
“The quarter was a challenging one for the Global Markets & Manufacturing sector of the Group, with substantial shortages and increases in costs of most raw materials such as fibre, latex, coconut charcoal and cotton yarn used by these businesses, eroding profit margins,” said Hayleys PLC Chairman Mohan Pandithage. “However the Purification and Hand Protection sectors have continued to make substantial contributions to the Group’s operating profits for the reporting period.”