Hayleys shows mixed performance in first quarter

While turnover rose by 17 per cent at the Hayleys Group, its net profit fell to Rs 582 million from Rs 606 million in the same 2011 period while the amount attributable to equity shareholders also eased to Rs 219 million from Rs 268 million.

Dhammika Perera, powerful businessman and also a government servant as Secretary to a Ministry, has a 41.28 per cent stake in the company in addition to control through stakes held by related parties (3.87 per cent) and Valibel (2.9 per cent), according to the quarterly report.

In a separate media statement by the company, revenue from Hand Protection was Rs 3.4 billion, Purification Products -Rs 2.7 billion, Transportation - Rs 2.2 billion and Plantations - Rs 2 billion as the main contributors.

"All of these sectors with the exception of Plantations improved their contribution to revenue and profit before interest and tax (PBIT), while Fibre and Textiles, two previously troubled sectors, also achieved noteworthy revivals. The Plantation sector's contribution to turnover and profit was impacted by lower rubber prices, and higher wages in the tea sector," the statement said.

Hayleys PLC Chairman Mohan Pandithage said: "The figures compare well against those of the first quarter of last year. We are encouraged by the improvements in Textiles and Fibre, and are pleased with the contributions of sectors such as Power & Energy, Industry Inputs and Construction Materials, which show a lot of promise for the future."

He said the Ceylon Continental Hotel will be fully operational in Q3 2012 once refurbishment is complete. "We are confident that our core businesses will maintain the momentum generated in this quarter through the rest of the year."