Diversified Hayleys posts Rs.522mn net profit for June quarter

11 August 2015 03:10 am

Sri Lanka’s diversified Hayleys PLC saw its consolidated net profit for the June quarter (1Q16) increasing 42.5 percent year-on-year (YoY) to Rs.522.7 million despite a revenue drop, the interim accounts released to the Colombo Stock Exchange showed.

The basic earnings per share improved to Rs.6.97 from Rs.4.89 recorded for the corresponding quarter of the previous year (1Q15).

The 3 percent YoY revenue drop to Rs.22 billion was offset by the much higher 6 percent YoY drop in cost of sales to Rs.16.9 billion, which resulted in a gross profit of Rs.5 billion, up 9 percent YoY.

Despite the increases in the administration and distribution expenses, the group reported an operating profit of Rs.1.62 billion, up 3 percent YoY.

The net finance costs for the period edged 3 percent YoY to Rs.498.5 million, showing that the group was largely able to contain its borrowings.

In fact, consolidated short-term interest-bearing borrowings as at June 30, 2015 stood at Rs.14.1 billion, down from Rs.16.8 billion a year ago.
Profit before tax rose 9 percent YoY to Rs.1.19 billion.

The transportation and logistics and purification products segments were the main contributors to the group bottom line.

The transportation and logistics sector reported an operating profit of Rs.397.7 million in 1Q16, up from Rs.197 million reported in 1Q15.

The purification products segment reported an operating profit of Rs.244 million, up from Rs.155.6 million. 

The investment and services sector also saw its operating profit increasing to Rs.256.5 million from Rs.188.8 million.

The group’s hand protection and agriculture segments saw considerable deterioration in their operating profits while plantations and fibre sectors experienced significant profit erosions.