Hayleys pulls off record performance in FY21 on pandemic-fuelled demand

• Records highest revenue of Rs.241.28bn in its 142-year history 
• 4Q revenue tops Rs.69bn, up 40% YoY, on strong exports
• Emerges as largest value-added exporter among publicly listed entities 

Hayleys PLC pulled off a stunning financial performance for the three months ended March 2021 (4Q21), as its key export companies manufacturing rubber gloves, purification products and fabrics became clear winners from the new conditions created by the pandemic. 

Sri Lanka’s largest value-added exporter among listed entities reported revenues of Rs.69.4 billion for the quarter under review, up 40 percent from a year ago. 

“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,” Hayleys said in a press release. 

In its reporting of interim results of the Hayleys group entities during the past few days, Mirror Business repeatedly showed how each business unit was finely placed to make the most from the pandemic-induced new normal, amid a massive demand for its portfolio of products. 

Meanwhile, the group’s plantation business, which has tea and rubber under its portfolio, also fared better both on higher demand and prices.  

While the exports were humming, the group’s other business units, which were mostly exposed to the domestic market, also did well, as those business units rode on a burst in consumer demand in the first three months of 2021. 

For instance, Singer Sri Lanka, which is part of the Hayleys group, did its highest ever sales in the quarter ended in March, propelling its profitability. 

“The consumer and 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,” the press release said.  Meanwhile, the group’s agriculture segment, which is identified separately from plantations, also did remarkably well on local farming and cultivation boom, which swept the country since the onset of the pandemic last year. 

While the group’s other business segments such as transportation and logistics, construction materials, industry inputs and power and energy did better in varying degrees, leisure remained the sour spot, due to the prolonged effect of the pandemic on the country’s tourism sector. 

At operating level, the group more than doubled its profits to Rs.8.7 billion in the three months, compared to Rs.4.2 billion in the same period last year. 

The group reported earnings of Rs.4.73 a share or Rs.3.5 billion for the quarter under review, compared to just 31 cents a share or Rs.234 million in the same period last year, as earnings received a sizeable boost from significantly lower net finance costs, made possible by the refinance of debt at massively low interest rates. 

The group booked only a billion rupees in net finance cost for the quarter, down from Rs.2.6 billion in the same quarter last year. The full-year net finance cost slumped to Rs.6.9 billion, from Rs.11.0 billion. 

Meanwhile, for the year ended on March 31, 2021, the Hayleys group reported earnings of Rs.10.18 a share or Rs.7.6 billion, compared to just earning of 50 cents a share or Rs.372.4 million. 

The sales rose by 15 percent to Rs.241.3 billion, of which foreign currency earnings exceeded rupee equivalent of US $ 600 million, making the company the largest value-added exporter among listed firms. It was also the highest revenue the group has ever generated in its 143-year history.  

The company’s share ended Rs.1.50 or 1.88 percent lower at Rs.78.40 yesterday, giving the corporate behemoth a market capitalisation of Rs.58.8 billion at the market close. 

Billionaire businessman Dhammika Perera has a 51.01 percent stake in Hayleys PLC.