The Hayleys Group delivered an impressive performance over the first quarter of the financial year ending March 31, 2025, recording Revenue and Profit-Before-Tax growth of 17% and 150%.
Consolidated Revenue amounted to Rs. 113.61 bn during the quarter with growth driven by the Consumer and Retail (+52%), Transportation and Logistics (+25%), Projects and Engineering (+125%) and Construction Materials (+47%) sectors.
The moderate performance of the Group’s export-oriented sectors was countered by strong growth in the verticals catering to the domestic market- underscoring the diversity and resilience of the Group’s earnings. The Group’s Gross Profit increased by 15%, with the Gross Profit margin maintained at 23%.
Consolidated Earnings Before Interest and Tax (EBIT) increased by 2% to Rs. 8.49 bn, with the Consumer and Retail Sector emerging as the largest contributor with a share of 17% supported by a broader revival in consumer sentiment, and Singer (Sri Lanka) PLC’s market position in the consumer durables industry.
Despite slight moderations in operating performance, Transportation and Logistics, Others, Textiles and Purification Sectors also provided key contributions to Group EBIT during the quarter. Overall, the Group’s Profit-After-Tax clocked in at Rs. 3.12 bn an increase of 136% compared to the corresponding quarter of the previous financial year.
The Group’s financial position remained strong, reflecting modest leverage and improving coverage levels. The AAA(lka) credit rating also takes into account the Group’s strong market positions in defensive industries such as Hand Protection, Agriculture and Purification and the anticipated upside potential from the domestic construction, tourism and retail industries.
Fitch Ratings also notes the Group’s geographical diversification in terms of earnings with 54% of Revenue generated via direct and indirect exports as well as manufacturing locations, particularly in the Purification and Hand Protection sectors.
