Sri Lanka’s Hayleys returns to profit-making in Sept on revenue

ECONOMYNEXT- Sri Lanka’s diversified holding firm Hayleys Plc rebounded in the September quarter, posting 8.4 million rupees in profits, from a 143.4 million rupee loss a year earlier on higher gross margins, interim financials showed.

Hayleys said it made 11 cents in earnings per share for the September quarter. For the six months in the 2020 financial year, the group had 7.20 rupees in loss per share. The Hayleys share closed trading at 156.50 rupees on Friday.

Hayleys moved back into profitmaking in the September quarter, from the loss in June, following the Easter Sunday bombings which disrupted economic activity, especially in the leisure segment.

Revenue for the September quarter grew 1 percent from a year earlier to 52.7 billion rupees and cost of sales fell 1 percent to 40.1 billion rupees.

Direct interest costs rose 71 percent to 478.5 million rupees. Gross profits grew 5 percent to 12.2 billion rupees.

Net finance costs were up 2 percent to 2.7 billion rupees.

Long-term interest bearing borrowings were up to 52 billion rupees at end-September from 39.7 billion rupees at end-March.

Short-term borrowings fell to 66.7 billion rupees from 73.6 billion rupees in the 6 months.

Group assets totalled 238.4 billion rupees, up from 231.7 billion rupees in March.

Revenue for the first 6 months of 2020 grew 2 percent from a year earlier to 105.4 billion rupees and gross profits grew 4 percent to 24.1 billion rupees. The net loss for the period grew 33 percent to 540.1 million rupees.

Consumer and retail operations revenue fell 1.4 percent to 31.1 billion rupees while revenue in transportation and logistics fell 3.6 percent to 22.2 billion rupees.

Purification products sales grew 25.9 percent to 11.3 billion rupees. Revenue growth was also seen in textiles and purification and plastic glove manufacturing, which are key exporters in the group.

The leisure sector revenue fell 34.8 percent to 1.9 billion rupees as the Hayleys-owned hotels continued to take a hit due to lower tourist arrivals following the Easter Sunday bombings. (Colombo/Nov11/2019)