Hayleys delivers its best ever PAT of Rs. 8.20 billion; Foreign currency earnings exceed USD 443 million

The Hayleys Group maintained its remarkable growth momentum in the first nine months of FY
2020/21, delivering its highest ever pre-tax profit of Rs.11.51 billion which represents a tripling of
profitability compared to the corresponding period of last year. The performance reflects
exceptional growth in the core performance of the Group’s export-oriented businesses, relentless
focus on cost efficiencies through the ‘Haysmart’ program and commendable improvements in the
Retail and Construction Materials sectors. The period under review reflects the strongest quarterly
and cumulative nine-month performance in the Group’s operating history and demonstrates its
adaptability and responsiveness in navigating complexities stemming from the operating landscape.
The Group’s revenue increased by 7% to Rs.171.90 billion in the nine months driven by continued
growth in the Hand Protection, Purification, Agriculture and Textiles sectors. Gross profit growth
amounted to 14% and reflects improvements in core profitability-primarily in the export-oriented
businesses. Meanwhile, the Group continued to achieve cost efficiencies with consolidated
Administrative expenses declining by 4% during the period, reflecting the successes of Haysmart- the
Group’s holistic cost rationalisation programme. The Earnings before interest, tax, depreciation, and
amortisation (EBITDA) recorded strong growth of 38% to Rs. 22.60 billion. The stellar performance
of the Hand Protection and Purification sectors represent robust demand, timely capacity
expansions, improved product mix, effective supply chain management and ongoing cost efficiencies.
Agriculture and Construction Materials sectors also recorded commendable growth while
Consumer & Retail delivered its highest-ever quarterly profitability supported by targeted sales
campaigns, robust demand for IT products and effective margin management. Despite continued
losses in the Leisure Sector, the Group’s Consolidated Earnings before Interest and Tax (EBIT)
increased by 40% to Rs.17.28 billion during the nine-month period. Resultantly, pre-tax profit nearly
tripled to Rs. 11.51 billion while profit-after-tax amounted to Rs. 8.20 billion compared to Rs.2.21
billion in the corresponding period of last year.
“While we expect our export-oriented businesses to maintain their current growth momentum and
deliver continued earnings growth, we are also optimistic about our domestic businesses, given the
resumption of economic activity and anticipated revival of Sri Lanka’s economy. We commend the
Government for their efforts in creating a conducive environment for businesses to continue
operations, despite unprecedented challenges posed by the COVID-19 pandemic. I would also like
to congratulate and acknowledge the dedication and indomitable spirit of the Hayleys Team, which has been a vital factor in the Group’s success during these challenging times” said Mr. Mohan
Pandithage, Chairman and Chief Executive of Hayleys PLC.
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 and Gamini Gunaratne .

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