Singer acquisition ups Hayleys top line, but leveraged buy-out weighs on group profits
The acquisition of Singer Sri Lanka PLC in a blockbuster deal last year boosted Hayleys PLC’S top line, but the leveraged buy-out is now weighing on the country’s most diversified conglomerate’s bottom line performance.
The interim results filed with the Colombo Stock Exchange showed the Hayleys group reporting earnings of Rs.2.37 a share or Rs.178 million for the October-december quarter (3Q18) compared to Rs.7.10 a share or Rs.532.5 million profit in the corresponding period, last year.
Although the two quarters are not comparable due to the Singer acquisition in September 2017, the heavy borrowings that went into funding the deal have led to shooting up in the finance cost from at least a billion rupees for the quarter.
The net finance cost for the quarter was flirting with Rs.2.0 billion for the quarter under review, while the previous year’s corresponding quarter figure stood at Rs.960 million.
Chairman/ceo Mohan Pandithage
Co-chairman Dhammika Perera