Sri Lanka’s Hayleys June losses double as interest, Easter blasts take toll
ECONOMYNEXT – Loses at Sri Lanka’s Hayleys Plc doubled to 548.5 million rupees in the June 2019 quarter amid rising interest costs, lower domestic consumer demand and a weak tourism industry following the Easter attack, despite better exports.
Losses per share for the quarter were 7.31 rupees. The stock closed a 161.70 rupees, down 3.90 rupees, Thursday
Exports industries in textiles, and activated carbon had shown higher profits.
The Easter attack had widened the tourism sector losses and subdued consumer sentiment had lowered profits for the consumer and retail segment, Hayleys said.
Group revenue for the June 2020 quarter rose 4 percent from a year earlier to 52.6 billion rupees due to higher export earnings while cost of sales rose 4 percent to 40.3 billion rupees and gross profits grew 3 percent to 11.9 billion rupees.
Net finance costs grew 27 percent to 3 billion rupees in June from a year earlier, as the group continues to be burdened by debt.
Long-term borrowings rose to 47.6 billion rupees in June from 39.7 billion rupees at the start of the financial year in April.
Short-term borrowings fell to 43.6 billion rupees in June from 47.8 billion rupees three months earlier.
"We anticipate interest rates to decline over the short-to-medium term, supporting earnings expansion," Chairman and Chief Executive Mohan Pandithage said.
Tax expenses in June fell 33 percent to 358.7 million rupees from a year earlier, as the group deferred income tax payments. (Colombo/Aug09/2019)