Monday 13 August 2018

Sri Lanka's Hayleys in the red amid rising interest costs

ECONOMYNEXT - Sri Lanka's Hayleys Plc, which is in manufacturing, consumer durables and logistics lost 264 million rupees in the June 2018 quarter up from a loss of 149 million rupees, amid rising interest costs.

The group reported a loss of 3.48 rupees per share for the quarter. The stock closed at 199.90 rupees, down 20 cents on Friday.

After consolidating recent acquisitions, revenues rose 74 percent to 50.6 billion rupees, cost of sales rose 67 percent to 38.7 billion rupees and gross profit rose 96 percent to 11.5 billion rupees.

Distribution expenses rose to 2.9 billion rupees from 1.08 billion and administration expenses rose to 5.57 billion rupees from 3.6 billion rupees.

Net finance costs rose 171 percent to to 2.75 billion rupees from 875 million rupees a year earlier.

Hayleys has gone on an acquisition spree in recent years, mostly funded by debt.

Long term borrowings rose to 34.9 billion rupees at the end of June 2018 from 20.5 billion rupees and short term borrowings rose to 43.0 billion rupees from 23.4 billion rupees.

The current portion of long term borrowings rose to 23.9 billion rupees from 4.5 billion rupees.

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