Sri Lanka Hayleys Sept net profit down 9-pct
ECONOMYNEXT – Sri Lanka’s Hayleys group said September 2016 quarter net profit fell 9 percent to Rs575 million from a year ago, with losses in its plantations business widening.
Sales rose 27 percent to Rs28 billion, according to interim accounts filed with the stock exchange.
Earnings per share for the quarter were Rs7.67. For the six months ending 30 September 2016, EPS was Rs12.40, with net profit down 19 percent to Rs903 million although sales went up 18 percent to Rs52 billion.
The accounts showed lower profits in the group’s transportation and logistics, leisure, power and energy, and purification product sectors, while profits from its gloves, construction materials and agriculture businesses rose.
A company statement said crop losses due to adverse weather conditions and a Government ban on weedicides resulted in the group’s plantation segment’s revenue shrinking from Rs4.7 billion to Rs4.4 billion during the period.
“While systemic issues in the Sri Lankan plantation sector did have a negative effect on the bottom line, these effects were largely mitigated by strong performances across Hayleys Group – particularly with regard to the hand protection and construction material segments,” Hayleys PLC Chairman Mohan Pandithage said.