Exports propel Hayleys 2Q as pandemic upends its fortunes

•  Reports Rs.58.7bn in revenue, up 11%
•  Records Rs.1.65bn net profit against Rs.8.3mn a year ago
•  Expects current momentum in export-oriented sectors to continue

Quick rebound in export volumes and group-wide cost efficiency measures paid off as Hayleys PLC reported robust top and bottom line performances for the quarter ended in September (2Q21), recording the group’s best ever six months.

The diversified conglomerate, which has interests in activated carbon, rubber gloves, retail, fabric and plantations reported revenue of Rs.58.7 billion for the quarter under review compared to Rs.52.7 billion in the same period last year, logging 11 percent growth.

The group’s protective hand-wear manufacturing and exporting business housed under its subsidiary, Dipped Products PLC, which also owns two of the leading tea and rubber plantations in the country last week reported revenues of Rs.Rs.10.9 billion for the months, up 47 percent from a year ago.

Haycarb PLC, the group’s activated carbon maker, a key input used in liquid purifying, food and beverage processing and other hygienic products such as soap and shampoo around the world, reported earnings of Rs.1.02 billion from revenues of Rs.6.3 billion during the three months to September, up from Rs.339.2 million and Rs.5.9 billion respectively, in the comparable period last year.  

“Improved profitability in the purification and hand protection sectors was underpinned by capacity expansions, better product mix, effective supply chain management and ongoing cost efficiencies,” Hayleys said in a statement. 

 “The agriculture and textiles sectors also delivered strong performances, while the plantation sector’s profitability was upheld by significant growth in the tea exports arm,” it added. 

Hayleys Group Chairman/CEO Mohan Pandithage said the company expects the current momentum in the export-oriented sectors to continue. 

“We anticipate our export-oriented businesses to maintain the current growth momentum and are confident of delivering significant earnings growth in the ensuing quarters,” Pandithage said, adding that they are mindful of the risks arising from the recent resurgence in the virus.

Hayleys reported earnings of Rs.22 a share or Rs.1.65 billion for the July-September quarter compared to 11 cents or Rs.8.4 million in the comparable period, last year. 

The net finance cost fell by 29 percent to Rs.1.9 billion from Rs.2.7 billion a year ago as the group re-negotiated favourable rates as market rates came down fast, and it also settled some debt.  

With the exception of leisure, transportation and logistics, power & energy and industry inputs operations of the group exceeded the year earlier levels in performance. 

Consumer and retail operation in particular rebounded strongly supported by the aggressive sales drive and cost efficiencies, Hayleys said. 

Business magnate Dhammika Perera holds 51.01 percent stake in Hayleys PLC while the Employees’ Provident Fund has 5.04 percent stake being its third largest shareholder. 

“Improved profitability in the purification and hand protection sectors was underpinned by capacity expansions, better product mix, effective supply chain management and ongoing cost efficiencies,” Hayleys said in a statement. 

 “The agriculture and textiles sectors also delivered strong performances, while the plantation sector’s profitability was upheld by significant growth in the tea exports arm,” it added. 

Hayleys Group Chairman/CEO Mohan Pandithage said the company expects the current momentum in the export-oriented sectors to continue. 

“We anticipate our export-oriented businesses to maintain the current growth momentum and are confident of delivering significant earnings growth in the ensuing quarters,” Pandithage said, adding that they are mindful of the risks arising from the recent resurgence in the virus.

Hayleys reported earnings of Rs.22 a share or Rs.1.65 billion for the July-September quarter compared to 11 cents or Rs.8.4 million in the comparable period, last year. 

The net finance cost fell by 29 percent to Rs.1.9 billion from Rs.2.7 billion a year ago as the group re-negotiated favourable rates as market rates came down fast, and it also settled some debt.  

With the exception of leisure, transportation and logistics, power & energy and industry inputs operations of the group exceeded the year earlier levels in performance. 

Consumer and retail operation in particular rebounded strongly supported by the aggressive sales drive and cost efficiencies, Hayleys said. 

Business magnate Dhammika Perera holds 51.01 percent stake in Hayleys PLC while the Employees’ Provident Fund has 5.04 percent stake being its third largest shareholder.