Hayleys ends FY25 with record Rs.492bn revenue

Diversified conglomerate Hayleys PLC posted a 40 percent year-on-year (YoY) increase in profit before tax (PBT) to Rs.35.37 billion for the financial year ending March 31, 2025, driven by consistent export earnings and solid performances in its consumer, retail and logistics segments.

The topline expanded 13 percent to an all-time high of Rs.492.20 billion, marking the highest revenue in the group’s history, while profit after tax jumped 52 percent to Rs.22.51 billion.

The group’s export earnings climbed 3 percent to US $ 875 million, accounting for 53 percent of total revenue. The entity has been focusing on penetrating new and existing overseas markets. Despite the appreciation of the rupee eating into margins, gross profit increased 8 percent, supported by a growing share of value-added products and efficiencies gained through digitalisation.

Earnings before interest and tax and earnings before interest, tax, depreciation and amortisation rose 12 percent to Rs.47.77 billion and Rs.60.02 billion. Net finance costs dropped sharply by 30 percent, in line with the falling interest rates, giving further lift to core profitability. Hayleys, in a commentary that followed the release of the financial results to the Colombo Stock Exchange yesterday said its consumer and retail, transportation and logistics, hand protection, textiles and purification segments were key contributors to revenue growth.

A more stable macroeconomic environment in Sri Lanka, supported by improved investor sentiment, fiscal consolidation and a successful debt restructure, provided tailwinds for domestic-facing sectors, the entity noted.

Tax expenses rose 23 percent to Rs.12.86 billion, reflecting higher earnings and the group’s contribution to state revenue.

Fitch Ratings reaffirmed Hayleys’ National Long-Term Rating at ‘AAA (lka)’, with a Stable Outlook and its Rs.7 billion debenture issue was oversubscribed on the first day.

“While rapidly shifting trade dynamics and geopolitical issues have affected the near-term visibility of the global economy, the diversity in the group’s business interests, customer segments and geographies are expected to mitigate these impacts to a considerable degree,” said Hayleys Chairman and Chief Executive Mohan Pandithage.

He added that Sri Lanka’s stabilising macro conditions and favourable demand trends are expected to support the growth of its domestic businesses moving forward.