9 August 2019 12:10 am
The group saw its net loss for the quarter under review widening over 100 percent year-on-year (YoY) to Rs.548.5 million while the loss per share increased to Rs.7.31 from Rs.3.48 a year ago.The revenue for the period rose 4 percent YoY to Rs.52.6 billion, while the costs rose at a similar percentage, resulting in a gross profit of Rs.11.9 billion, up 3 percent YoY. The group’s operating profit also rose 4 percent YoY to Rs.3.3 billion.But the group’s net finance cost rose 27 percent YoY to Rs.3.01 billion, wiping out the gains made at the top line level.
According to the Hayleys balance sheet, the group, under its current liabilities, had Rs.43.5 billion short-term interest bearing borrowings as at June 30, 2019, up from Rs.43 billion a year ago.
Long-term borrowings stood at Rs.23.4 billion, down from Rs.23.9 billion.
The group’s largely debt-funded mega acquisitions were the key reason for the rise in the debt pile and interest cost.
The group’s biggest contributor to the revenue, its consumer & retail segment led by Singer Sri Lanka PLC, saw its revenue for the quarter coming down to Rs.16 billion from Rs.16.6 billion a year ago largely due to the poor consumer sentiment that prevailed after the Easter attacks.
The segment’s operating profit fell to Rs.1.08 billion from Rs.1.2 billion.
The group’s transport and logistics business recorded revenues of Rs.11.3 billion, up from Rs.10.8 billion a year ago. The operating profit of the segment however remained flat at Rs.682 million.
The group’s activated carbon operations led by Haycarb PLC and textiles segment represented by Hayleys Fabric PLC contributed positively to the group’s revenue and profits.
The hand protection segment of the group represented by Dipped Products recorded lower profits despite higher revenues.
The plantation segment of the group recorded lower revenue and flat profits. The group’s leisure segment affected by the Easter attacks recorded losses. “The diversity in the Group’s operations continue to enable Hayleys to withstand challenges stemming from the operating landscape,” Hayleys Chairman/CEO Mohan Pandithage said in a statement.
“We are encouraged by the faster than expected recovery of the country’s tourism sector and are hopeful of a strong Winter season this year. We also anticipate interest rates to decline over the short-to-medium term, supporting earnings expansion,” he added.
Billionaire businessman and Hayleys PLC Co-Chairman Dhammika Perera holds 50.44 percent of the company. The Employees’ Provident Fund also had a 5.04 percent stake in the company being the third largest shareholder.