Hayleys Group consolidates to deliver better results
Sri Lankan multinational, diversified conglomerate, Hayleys PLC is continuing its consolidation process amidst competition and volatile economic conditions in the country trading at fair value while celebrating 140 years of its business excellence and innovation this year, top officials of the company asserted at a media round table in Colombo recently.
“Hayleys Group remains number one in the performance of almost all of its subsidiaries with business interests spanning over 16 sectors which account for 3.3 per cent of the country’s export earnings,” Chairman and Chief Executive of the company Mohan Pandithage said.
One of the reasons of achieving organic growth across all businesses of the group despite challenging times was one of localised value addition, to capture increasingly globalised markets, he pointed out.
Revenue within the consumer and retail segment expanded substantially bolstered by the contributions of Singer ( Sri Lanka) Group which was acquired by Hayleys at end of 2Q 2018, generating Rs. 1.3 billion in operating profits.
“Our organisation is geared towards seeking out new methods to sustainably harness this nation’s potential and transform it into lasting value that will lend vital support to the aspirations of our country and all of our fellow Sri Lankans from every walk of life,” he added.
Looking at the growth rates, earnings, revenue, and cash flow gives a better idea of the true operational results that the company has delivered over the years.
Today it stands out as one of Sri Lanka’s most prominent success stories, having been the first listed Sri Lankan corporate to surpass US$ 1billion in revenue.
Hayleys group net profit fell 37 per cent to Rs. 827 million in the March 2018 quarter from a year ago while sales rose 74 per cent to almost Rs. 51 billion, interim accounts filed with the stock exchange showed.
A company statement said the group posted strong operating profits which expanded by 18 per cent to Rs. 11.4 billion during the year.
Sri Lanka’s industrial and manufacturing sector has been seeing large declines so far due to varied reasons; rupee depreciation, interest rate hikes, inconsistent economic policies and labour shortage were hurting local businesses.
Sri Lanka’s economy is slowing and the stock market is not prospering not even responding at present.
But even under these circumstances, catering to over 7.6 million customers worldwide, the Hayleys Group at present stands as one of Sri Lanka’s most crucial economic centrepiece, providing direct employment to 32,000 Sri Lankans, in addition to indirect employment to over 20,000 people, officials said.
The group’s Eco-Solutions sector has become one of the leading manufacturers and exporters of value-added coconut fibre products, distributing over 105 products locally and internationally.
One of the group’s subsidiaries, Dipped Products represents one of the largest glove manufacturers in Sri Lanka, maintaining a global market share of 5 per cent through a product portfolio that spans 109 categories of gloves and 240 versions of natural and synthetic latex.
The group’s Purification segment stands as the world’s number one in coconut shell-based activated carbon solutions. The segment currently produces 42,500 tonnes of activated carbon
and currently retains a 16 per cent global market share for high quality activated carbon, Mr. Pandithage revealed.
The group’ s Textile Manufacturing business supplies fabric to some of the world’s leading clientele, including global fashion and sportswear brands, producing over 2.8 million metres of fabric per month.
Hayleys subsidiary Alumex is set to expand production of Aluminium extrusions in a big
way with the opening of world class largest factory in the South Asian region recently.
The company has invested over Rs. 2 billion to set up this modern state of the art factory to upgrade manufacturing infrastructure and technology constantly supplying unique combinations of aluminum profile, he added.
It is offering a wide range of architectural, residential and industrial products, catering to the top and middle tiers in the con-
struction industry.
The HayleysGroup’ s Transportation and Logistics represents one of the country’s most influential industry players straddling diverse areas such as international freight management, terminals and engineering, marine, and integrated logistics services.
The investments made by Hayleys Advantis over the years in terms of facilities development, acquisition of unique equipment and skill enhancement, has ena-
bled the local logistics industry to facilitate large scale logistics projects, which would otherwise have required foreign expertise, said Managing Director of the company Ruwan Waidyaratne .
The company has 22 sea-going assets, which includes a tanker that provides bunkering services, he said adding that they have acquired 94.8 per cent stake in the Sri Lanka Shipping Co. for Rs. 4.9 billion.
The group’s leisure sector offers end-to-end tourism solutions span- ning tour operator and destination management services to the management of 8 resort properties – including one property in the Maldives - through the Amaya Resort chain and its five-star city hotel, The Kingsbury.
Lalin Samarawickrama, Managing Director, The Kingsbury PLC noted that they would be investing in six plantation bungalows including Langdale in Nuwara Eliya and another ancient mansion in Oliphant Plantations.