Hayleys PLC, one of the country’s largest multinational conglomerates with a history going back 136 years and generating 2.73% of the country’s export income, has posted 8% revenue growth at group level to Rs.80.55 billion and a 6% profit growth to Rs.3.71 billion in the year ended March 31, 2014.
Of these earnings Rs.1.81 billion is attributable to shareholders of Hayleys, up 3% from the previous year with the results translating to earnings per share of Rs.24.11 against Rs.23.48 a year earlier.
Hayleys is controlled by billionaire businessman Dhammika Perera owning 45.46% on his own account while Vallibel One PLC controlled by him owns a further 2.91%.
Hayleys PLC Employees Share Trust controlled by directors of the company owned 9.14% while Trustees of the D.S. Jayasundera Trust, set up by the company’s highly respected former Chairman, the late Mr. D.S. Jayasundera, who long served the group as Chairman/CEO and catalyzed its transformation from a largely fibre exporting business into its current conglomerate status, is the second highest shareholder next to Perera.
The group’s Chairman/CEO, Mr. Mohan Pandithage has told shareholders in the recently released annual report: "Our recent strategic investments are delivering expected results, and going forward, we will continue to ensure sustained growth and superior value creation across all our business sectors."
In plantations, they had to grapple with vagaries of the weather and escalating wages providing livelihoods and social services to over 23,000 workers in some of the most economically backward regions in the country.
Of these earnings Rs.1.81 billion is attributable to shareholders of Hayleys, up 3% from the previous year with the results translating to earnings per share of Rs.24.11 against Rs.23.48 a year earlier.
Hayleys is controlled by billionaire businessman Dhammika Perera owning 45.46% on his own account while Vallibel One PLC controlled by him owns a further 2.91%.
Hayleys PLC Employees Share Trust controlled by directors of the company owned 9.14% while Trustees of the D.S. Jayasundera Trust, set up by the company’s highly respected former Chairman, the late Mr. D.S. Jayasundera, who long served the group as Chairman/CEO and catalyzed its transformation from a largely fibre exporting business into its current conglomerate status, is the second highest shareholder next to Perera.
The group’s Chairman/CEO, Mr. Mohan Pandithage has told shareholders in the recently released annual report: "Our recent strategic investments are delivering expected results, and going forward, we will continue to ensure sustained growth and superior value creation across all our business sectors."
He rated revenue growth as a "satisfactory" 8.4% with profit before-tax up 3.2% to Rs.5.1 billion.
"The strong returns generated from the transportation & logistics and purification sectors along with recent investments in leisure, renewable energy and construction materials drove the positive side of performance," he said.
Commenting on Dipped Products, the group’s rubber glove manufacturing subsidiary, he said that the hand protection sector facing many challenges including forced closure of a key factory at Rathupaswala, had posted "meaningful results."
Commenting on Dipped Products, the group’s rubber glove manufacturing subsidiary, he said that the hand protection sector facing many challenges including forced closure of a key factory at Rathupaswala, had posted "meaningful results."
"Some of our established businesses, particularly the fibre and textiles sectors, posed operational challenges that are being addressed. Overall, an effective portfolio strategy provided the required resilience for the group to post satisfactory results," he said.
Pandithage dismissed allegations that their Rathupaswala factory was contaminating ground water saying it had always surpassed requirements of the environmental protection regulations. This has been subsequently confirmed by independent investigations.
"Nevertheless, as attempts to resume production were hindered, DPL chose to invest in a new manufacturing location in the BOI industrial zone in Biyagama. I am pleased to note that production has commenced in Biyagama with the project being implemented within anticipated time lines and costs," he said.
"The silver lining is that adversity makes us even more resolute in discovering our hidden strengths. Despite these setbacks the hand protection sector turned in a PBT of Rs.910 million for the year (FY 2012/13: Rs.1,339 million)."
Pandithage also announced the group, already into gherkin and jalapeno peppers out-grower venture, had recently ventured into seaweed cultivation providing supplementary income to fishing community in the Mannar and Kilinochchi districts.
"Hayleys is present along the entire value chain of the agriculture sector, from providing seeds for the domestic sector to tissue culture and biotechnology for the export of flower seeds and plants," he said. The bottom line in agriculture had been rewarding with the profit before-tax of Rs.638 million during the year, he noted.
Pandithage dismissed allegations that their Rathupaswala factory was contaminating ground water saying it had always surpassed requirements of the environmental protection regulations. This has been subsequently confirmed by independent investigations.
"Nevertheless, as attempts to resume production were hindered, DPL chose to invest in a new manufacturing location in the BOI industrial zone in Biyagama. I am pleased to note that production has commenced in Biyagama with the project being implemented within anticipated time lines and costs," he said.
"The silver lining is that adversity makes us even more resolute in discovering our hidden strengths. Despite these setbacks the hand protection sector turned in a PBT of Rs.910 million for the year (FY 2012/13: Rs.1,339 million)."
Pandithage also announced the group, already into gherkin and jalapeno peppers out-grower venture, had recently ventured into seaweed cultivation providing supplementary income to fishing community in the Mannar and Kilinochchi districts.
"Hayleys is present along the entire value chain of the agriculture sector, from providing seeds for the domestic sector to tissue culture and biotechnology for the export of flower seeds and plants," he said. The bottom line in agriculture had been rewarding with the profit before-tax of Rs.638 million during the year, he noted.
In plantations, they had to grapple with vagaries of the weather and escalating wages providing livelihoods and social services to over 23,000 workers in some of the most economically backward regions in the country.
"We invested over Rs.2 billion in field development in our tea and rubber plantations during the past five years, with benefits to be reaped over the medium and long term. In spite of absorbing a wage hike this year, the plantation sector recorded PBT of Rs.699 million (FY 2012/13: Rs.959 million)." Pandithage said.
Pandithage concluded saying that the group remained bullish on the sectors where they have made significant investments over the recent past and are confident of seeing recovery in those that had not met expectations through remedial measures that are being implemented.
Their leisure segment including The Kingsbury, the group’s flagship city hotel, had posted a PBT of Rs.538 million in the year against a loss of Rs.18 million a year earlier.
Pandithage concluded saying that the group remained bullish on the sectors where they have made significant investments over the recent past and are confident of seeing recovery in those that had not met expectations through remedial measures that are being implemented.
Their leisure segment including The Kingsbury, the group’s flagship city hotel, had posted a PBT of Rs.538 million in the year against a loss of Rs.18 million a year earlier.
Hayleys has a stated capital of Rs.1.575 billion, capital reserves of Rs.1.43 billion and revenue reserves of Rs.12.23 billion. Total assets ran at Rs.81.35 billion and total liabilities at Rs.45 billion.
Net assets per share were up to Rs.316.31 from Rs.296.69 a year earlier and a first and final dividend of Rs.5 per share has been recommended by the directors, up from Rs.4.50 the previous year.
The Hayleys share traded at a high of Rs.325 and a low of Rs.285 and closed the year at Rs.285. This compared to a trading range of Rs.366 to Rs.280 closing at Rs.298.70 a year earlier.
The EPF has increased its holdings in Hayleys to over 2.5 million shares (3.38%) from over 1.8 million (2.43%) the previous year.
The directors of the company are: Messrs. Mohan Pandithage (Chairman/CEO), Dhammika Perera (Deputy Chairman), Rizvi Zaheed, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral, Dr. Mahesha Ranasoma, Mangala Goonathilake, Lalin Samarawickrama, Ruwan Waidyaratne, Hisham Jamaldeen and Ms. Shyamalie Weerasooriya (Alternate Director to Dhammika Perera). www.island.lk
The EPF has increased its holdings in Hayleys to over 2.5 million shares (3.38%) from over 1.8 million (2.43%) the previous year.
The directors of the company are: Messrs. Mohan Pandithage (Chairman/CEO), Dhammika Perera (Deputy Chairman), Rizvi Zaheed, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral, Dr. Mahesha Ranasoma, Mangala Goonathilake, Lalin Samarawickrama, Ruwan Waidyaratne, Hisham Jamaldeen and Ms. Shyamalie Weerasooriya (Alternate Director to Dhammika Perera). www.island.lk
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