Sri Lanka’s Hayleys Fabric profits surge in December quarter
ECONOMYNEXT – Profits at Sri Lanka’s Hayleys Fabrics Plc surged to 107.6 million rupees in the December 2018 quarter, compared to a 10.8 million rupee-loss a year earlier on improving sales, interim results showed.
Earnings were 52 cents a share in the December quarter, interim results filed with the stock exchange showed.
The reinstatement of GSP Plus and directly marketing its own brands of fabric has helped Hayleys Fabric achieve better margins, and recover losses of 105.6 million rupees sustained the previous financial year.
In the nine months to end December 2018, earnings were 93 cents a share on a profit of 193.8 million rupees, up 1,017 percent from a 21.1 million loss a year earlier with sales growing 32 percent in the period to 8.6 billion rupees.
The stock closed Monday down 10 cents to 9.40 rupees.
In the December quarter, revenue grew 64 percent from a year earlier to 3.5 billion rupees, and cost of sales also increased 64 percent to 3.1 billion rupees leading to gross profits of 374 million rupees, up 63 percent from a year earlier.
In US dollar terms, revenue had increased 41 percent to 19.5 million US dollars.
Administrative expenses grew 2 percent to 192.2 million rupees and distribution costs increased 121 percent to 31 million rupees.
Net finance costs fell 38 percent to 23.8 million rupees. (COLOMBO, 21 January 2018)