ECONOMYNEXT – Sri Lanka’s Hayleys group net profit in the September 2017 quarter fell 71% to Rs168 million from a year ago with net finance costs up by half as it stepped up investments and acquisitions.
Sales rose 19% to Rs33.3 billion, according to interim accounts filed with the stock exchange.
Net finance costs rose by 50% to just over Rs1 billion, the accounts showed.
Quarterly earnings per share were Rs2.24. Hayleys was last traded at Rs267.40. EPS for the six months to September 2017 were 25 cents compared with Rs12.43 the year before.
“The group has continuously infused higher levels of investment into key business segments with a view to enhancing growth potential over the medium-long term,” a statement said.
“These investments were also reflected in the group’s net finance cost, which rose to Rs1.9 billion while group profit before tax for the period stood at Rs. 1.4 billion in 1HFY17/18.”
Hayleys said its recent acquisition of a 61.73% of Singer (Sri Lanka) for a Rs10.9 billion was its single largest acquisition for a listed company in Sri Lanka in recent times. It raised its holding to 80.96 % subsequent to the mandatory offer concluded on 31st October, 2017.
“Having finalized our acquisition of Singer Sri Lanka PLC, the Hayleys Group is now moving to expand rapidly into the retail sector leveraging on the time-tested expertise of both companies,” Hayleys Chairman and Chief Executive Mohan Pandithage said.
“We are confident that the acquisition of Singer (Sri Lanka) PLC together with the recent major investments that the Hayleys Group has made into leisure and transport and logistics sectors are anticipated to yield significantly improved results for the group in the future.”
(COLOMBO, November 07, 2017)