Hayleys PLC more than doubled its profit attributable to the shareholders in the first quarter of 2026/27, driven by a strong growth in transportation and logistics, consumer and retail and export-oriented businesses, despite the higher finance costs and uneven performance across its portfolio.
The profit attributable to the equity holders surged 137 percent year-on-year to Rs.3.57 billion for the three months ended June 30, from Rs.1.51 billion a year earlier. Earnings per share rose to Rs.4.56, from Rs.2.01.
Revenue from the continuing operations increased 38 percent to Rs.179.32 billion, while the operating profit rose 53 percent to Rs.14.02 billion.
Profit before tax climbed 61 percent to Rs.10.15 billion, lifting the pre-tax margin to 5.7 percent, from 4.8 percent. Profit after tax from the continuing operations rose 73 percent to Rs.6.33 billion.
After a Rs.403.4 million loss from the discontinued operations, total profit increased 86 percent to Rs.5.92 billion.
Hayleys said the domestic operating environment remained relatively stable, supported by the sustained demand, improving credit conditions and continued investment activity. Globally, the geopolitical tensions disrupted the energy markets and supply chains, contributing to the volatility in the commodity prices and freight costs.
The group’s export-oriented sectors collectively recorded a 24 percent revenue growth, supported by the demand for the value-added products and favourable exchange rate movements.
Transportation and logistics were among the strongest contributors, with the external revenue surging 84 percent to Rs.42.88 billion and the segment profit more than doubling to Rs.3.24 billion.
Consumer and retail, the group’s largest revenue contributor, recorded a 46 percent increase in revenue to Rs.49.22 billion. The segment profit rose 60 percent to Rs.4.83 billion, supported by the market activations and an expanded product portfolio.
The purification products revenue increased 44 percent to Rs.19.59 billion, while the segment profit rose 83 percent to Rs.1.75 billion. The hand protection revenue grew 21 percent to Rs.17.26 billion, with profit up 34 percent to Rs.1.25 billion.
The industry inputs recorded one of the sharpest improvements, with the profit rising more than sixfold to Rs.1.38 billion, as revenue grew 49 percent to Rs.3.02 billion. Energy, mobility and projects more than doubled the profit to Rs.481 million on a 63 percent increase in revenue.
However, textiles reported a 42 percent decline in profit to Rs.453.1 million, while the plantations and tea exports recorded declines of 3 percent and 14 percent, respectively.
Leisure swung to a Rs.9.4 million loss, from a Rs.105.2 million profit, with revenue falling 5 percent. The agriculture revenue declined 8 percent, although the segment profit rose 36 percent to Rs.527 million.
The group’s finance costs almost doubled to Rs.8.57 billion, partly offset by a threefold increase in the finance income to Rs.4.93 billion. The net finance costs rose 31 percent to Rs.3.64 billion.
Hayleys Chairman and Chief Executive Mohan Pandithage said the group was reshaping its portfolio in response to the changing industry and customer requirements.
“As industries continue to evolve, both domestically and globally, we are progressively shaping our portfolio to remain aligned with the emerging market dynamics, new customer needs and areas of long-term growth,” he said.
Hayleys invested Rs.17.92 billion in property, plant and equipment during the quarter, up from Rs.4.11 billion a year earlier. The net operating cash flow, however, turned negative at Rs.441.4 million, compared with an inflow of Rs.1.99 billion.
Total interest-bearing borrowings rose 5 percent from end-March to Rs.305.03 billion, largely due to the higher short-term borrowings. The group said the funding was mainly deployed towards capacity expansions and investments intended to support future earnings.
The completion of a Rs.9 billion rights issue strengthened the group’s equity base. Total equity rose to Rs.177.19 billion, from Rs.170.50 billion at end-March, while total assets increased to Rs.686.98 billion, from Rs.645.82 billion.
The discontinued operation related to Luxury Resort (Pvt.) Ltd, which ceased its Maldives hotel operations, following the transfer of its head lease and operating assets to a purchaser.
