Hayleys delivers record PBT of Rs. 19.23 billion; Foreign currency earnings exceed USD 600 million

The Hayleys Group delivered the highest revenue and profit in its 143-year history during FY 2020/21with revenue increasing to Rs 241.28 billion whilst net profit stood at Rs. 14.05 billion – six percent of revenue, a company news release issued last week said.

“Profit attributable to shareholders recorded a healthy growth to Rs. 7.64 billion, compared to Rs. 372.42 million the previous year with the performance underpinned by significant growth in the core performance of the Group’s export-oriented businesses, ongoing focus on resource optimisation and cost management through the ‘Haysmart’ program and the Group’s strategic agility in navigating the numerous complexities presented by the outbreak of the COVID-19 pandemic during the year” it said.

“The Group’s revenue increased to Rs.241.28 billion reflecting strong growth in export-oriented business including Hand Protection, Purification and Textiles. With foreign currency earnings exceeding USD 600 million, Hayleys emerged as the largest value-added-exporter among public listed entities.”

The release said gross profit increased by 22% supported by improvements in core profitability-primarily in export-oriented businesses. Concerted efforts at driving organisation-wide cost rationalisation have generated significant savings, with the increase in Administrative and Distribution expenses contained at five percent and two percent respectively, despite a considerable increase in activity levels.

Meanwhile, earnings before interest, tax, depreciation, and amortisation (EBITDA) recorded a strong growth of 42% to Rs. 33.21 billion and the Group’s Consolidated Earnings before Interest and Tax (EBIT) increased by 58% to Rs.25.95 billion during the year. Net finance cost declined by 38% reflecting the Group’s efforts to rationalise borrowings and the continued decline in market interest rates during the year, the release said.

“The Hand Protection, Purification and Textile sectors delivered remarkable growth supported by robust demand, proactive efforts to increase capacity utilisation, effective supply chain management and increased contributions from value-added products.

“The Agriculture and Construction Materials Sectors also recorded good profit growth, demonstrating strong resilience amidst the innumerable challenges that prevailed. The Transportation sector recorded strong rebound in the second half of the year delivering commendable earnings growth.

“Meanwhile, the Consumer & Retail Sector delivered its highest ever profitability, reflecting robust demand for IT products and the Singer Group’s strategic focus on optimising distribution channels to increase customer penetration.

“Understandably the Leisure Sector continued to generate losses” the release said.

“Despite the resurgence of COVID-19 infections in recent weeks, we remain optimistic regarding a medium-term economic revival, given the conducive policy environment and Government efforts to ensure continued business activity” said Mr. Mohan Pandithage, Chairman of Hayleys PLC. “Our team has embraced the realities of a post-pandemic world, through adapting to new ways of working. I have a special word of thanks to Mr Dhammika Perera, the Board of Directors and the Group Management Committee who steered the Group to deliver this exceptional results.

“I would like to extend my appreciation and gratitude to Hayleys Team, who have once again proven that they are the Group’s most valuable asset. We expect our export-oriented businesses to maintain their growth momentum while the strong rebound of our domestic businesses seen in the second half of the year is expected to continue in 2021/22.

“Our optimism is demonstrated by continued investments in expanding our operations and driving increased economic value, as evidenced by the Group’s recent acquisition of South Asia Textiles Limited which is expected to further strengthen our proposition in the textiles sector.”

The Board of Directors of Hayleys PLC comprises Messrs. Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Ruwan Waidyaratne, Hisham Jamaldeen, Aravinda Perera, Jayanthi Dharmasena, Rohan Karr, Gamini Gunaratne and Kawshi Amarasinghe (Alternate to Dhammika Perera).