ECONOMYNEXT – Sri Lanka’s Hayleys PLC said group net profit for the September 2015 quarter rose six percent to 629 million rupees from a year ago supported mainly by strong gains in its transportation, activated carbon and textiles businesses.
Sales fell four percent to 22 billion rupees from the previous year, interim accounts filed with the stock exchange showed.
Finance income in the September quarter shot up 159 percent to 271 million rupees. Quarterly earnings per share rose to 8.39 rupees from 7.89 rupees the year before.
The group estimated liability to the 25 percent Super Gains Tax for the 2013/14 financial year at 939.7 million rupees.
In the six months to 30 September 2015, EPS rose to 15.36 rupees from 12.78 rupees the year before.
Hayleys group transportation and logistics business was the biggest contributor to profits while the activated carbon purification products business and textiles also did well.
A company statement said half-year profits were supported by strong results from the transportation and logistics, agriculture, purification products, leisure, textiles, construction materials and industrial inputs sectors.
“The transportation and logistics sector contributed a notable increase to the bottom line during the six month period from the previous year as the sector continues to grow its business interest through new business opportunities and increasing existing business lines,” it said.
The agriculture sector profitability “rose significantly” from the previous year as it continued to expand its agro base and diversify into new high export potential crops like seaweed, the company said.
“The purification products Sector also posted robust results as local and global demand for purification products continued to rise in the six month period.”
Hayley said its textiles sector continued its growth momentum after its successful restructuring and re-launch under a new corporate identity ‘Hayleys Fabric’.
“The multiple issues faced by the plantation sector, including lower prices for commodities in the world market and inclement weather, saw the sector incur a loss during the six month period,” the statement said.
“Most of the sectors continue to perform strongly despite a challenging operating environment, indicative of the resilience of the Group,” said Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.
“We look forward to gaining momentum during the remainder of the year.” (Colombo/November 09 2015)