Hayleys profit rises in September quarter as domestic recovery lifts revenue

Chairman and Chief Executive Mohan Pandithage	Co-Chairman and Non-Executive Director Dhammika Perera

Hayleys PLC reported a stronger September quarter, supported by improving domestic demand and easing finance costs, while the diversified conglomerate continued to broaden its portfolio with strategic acquisitions and sector expansions.

Quarterly consolidated revenue rose 13 percentage to Rs.138.89 billion, driven mainly by a rebound in local operations that offset global uncertainty and softer export markets. Profit after tax for the quarter climbed 13 percentage to Rs.4.39 billion, helped by a 15-percentage drop in net finance costs amid declining interest rates.

Group profit before tax also improved, with cumulative PBT for the six months to September 30, rising 5 percentage year-on-year to Rs.13.33 billion. The company credited its diversified footprint, spanning export manufacturing, consumer retail, logistics and FMCG, for cushioning external volatility linked to geopolitical tensions and divergent global policy paths.

Hayleys deepened that diversification during the period, entering the mobility and supermarket sectors and acquiring a significant stake in Harischandra Mills PLC, a household FMCG label with a strong brand legacy.

For the first half, consolidated revenue increased 14 percentage to Rs.269.53 billion. The consumer and retail segment was the main engine of growth, benefitting from broad geographic reach and stronger domestic spending. Export-oriented sectors also held momentum, with the hand protection and purification units supporting a 6-percentage rise in export revenue for the period.

Group EBITDA rose 4 percentage to Rs.26.25 billion in the six months, while EBIT grew 2 percentage to Rs.19.55 billion, underscoring tighter cost management and steady operating performance despite mixed global trade conditions.

Net profit for the six months increased 8 percentage to Rs.7.56 billion. Investor sentiment mirrored the improved earnings trajectory, with the share price climbing to Rs.185.75 at end-September, from Rs.100 a year earlier.

Chairman and Chief Executive Mohan Pandithage said the fast-changing operating environment was opening new pathways for expansion. 

“While the operating landscape is evolving at a rapid pace, I am firm in my belief that for a group that is as agile as Hayleys, these dynamics serve as a catalyst for growth and innovation,” he said. 

The group’s strategy, he added, remains anchored in market diversification, customer-centric innovation, talent development and sustainability-led value creation.