Hayleys PLC posted a 65% Year-on-Year (YoY) increase in turnover up to Rs. 103 billion for the six months period ending September 30, 2018.
The Group posted an operating profit of Rs. 6.8 billion, up from the Rs 3.2 billion posted in the corresponding period of last year. The Group incurred an increased net finance cost of Rs. 5 billion, mainly due to the inclusion of the Singer Group, financing costs of the recent acquisitions and exchange rate fluctuation. However, the Group Profit Before Tax (PBT) improved to Rs. 1.8 billion from Rs. 1.4 billion in 1HFY18/19 while Profit After Tax (PAT) also improved to Rs. 769 million from Rs. 719 million.
All segments except for Plantations have contributed to the healthy expansion in turnover for the Group. Revenue within the Consumer and Retail segment expanded substantially from Rs. 2.7 billion to Rs. 31.5 billion in 1HFY18/19, bolstered by the contributions of Singer (Sri Lanka) Group which were acquired by Hayleys at the end of 2Q18, generating Rs. 2.4 billion in operating profits.
Hayleys PLC Chairman and Chief Executive, Mohan Pandithage said, “The Group was able to achieve significant growth driven by the investments we have made towards the acquisition of Singer (Sri Lanka), where the consumer and retail sector has spearheaded the improvement of the topline during 1HFY18/19.”
“While anticipating further improvement of results from this sector, Group’s continuous investments and efforts to improve quality and efficiency through well-placed processes across every business sector will yield greater results for Hayleys PLC in the future,” he said.
During the first half, the Group’s Transportation and Logistics segment, supported by its recent acquisitions, posted a turnover of Rs. 22.7 billion, as compared with Rs. 16.4 billion in the previous period, leading to an operating profit of Rs. 1.4 billion, from a previous Rs. 1.1 billion.
Turnover in the Group’s Eco Solutions segment rose from Rs. 2.1 billion to Rs. 3.4 billion while operating profits of the sector rose significantly from Rs. 70 million to Rs. 193 million.
Meanwhile, turnover in the Group’s Purification Products segment expanded from Rs. 7.1 billion to Rs. 9 billion while operating profits increased from Rs. 358 million to Rs. 614 million.
The Group’s Hand Protection segment posted a revenue of Rs. 8.4 billion, against a previous Rs. 8 billion and operating profits rising significantly to Rs. 521 million, as compared with Rs. 98 million in 1HFY18/19.
The Agriculture sector’s turnover expanded to Rs. 5.8 billion, as compared with Rs. 5.5 billion, with operating profits improving to Rs. 462 million from Rs.234 million in the corresponding period.
Poor weather and world market prices have hampered the Plantations sector, resulting in reduced turnover and operating profits, which ended the first half at Rs. 6.4 billion, and Rs. 29 million.
Hayleys Global Beverages (Pvt) Ltd (HGBL), a unit of Hayleys PLC entered into a joint venture partnership with Germany’s botanicals giant Martin Bauer Group (BMG).
With the demand for tea and herbal ingredients forecast to grow, this collaboration is expected to harness the immense potential of HGBL for the Group.