The Hayleys Group has made a robust beginning to the financial year, reporting a 38% year-on-year increase in Consolidated Revenue from Continuing Operations, which reached Rs. 179.32 billion. Additionally, Consolidated Profit Before Tax from Continuing Operations surged by 61% to Rs. 10.15 billion for the three-month period ending June 30, 2026. This positive performance was primarily fueled by the Group’s export-focused divisions, along with strong growth observed in the Consumer & Retail and Transportation & Logistics sectors. The diverse earnings portfolio of the Group, spanning various export markets and domestic operations, facilitated its ability to adapt to a changing business environment while seizing opportunities across different sectors and regions. This strategic diversification continues to serve as a solid foundation for ongoing growth.
Domestically, the operating landscape remained stable, bolstered by consistent demand, favorable credit conditions, and ongoing investment activities. However, heightened geopolitical tensions on a global scale led to intermittent disruptions in energy markets and supply chains, causing fluctuations in commodity prices and freight expenses.
The notable revenue growth experienced by the Group during the quarter was largely attributed to the Transportation & Logistics Sector, which saw an impressive 84% year-on-year rise, bringing in Rs. 42.88 billion, thanks to improved operating circumstances. The Consumer & Retail Sector also showed strong performance, with revenues climbing by 46% to Rs. 49.22 billion, driven by targeted market initiatives and an expanded product range. Furthermore, the Group’s export-oriented sectors demonstrated commendable growth, with revenue rising by 24% due to a sustained focus on value-added products and favorable exchange rate conditions. As a testament to the Group’s strong operational performance, Consolidated Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) increased by 46% to Rs. 18.11 billion, while Earnings Before Interest and Tax (EBIT) grew by 53% to Rs. 14.02 billion. Consequently, Consolidated Profit Before Tax reached Rs. 10.15 billion, marking a 61% increase, while Consolidated Profit After Tax amounted to Rs. 5.92 billion, an impressive rise of 86% from the previous year.
The Group’s financial stability was reinforced by a bolstered equity base resulting from a Rights Issue and stronger profit generation. Although borrowings increased during this period, they primarily reflected investments in strategic capacity expansions expected to enhance future earnings. The robustness of the Group’s financial standing is further validated by Fitch Ratings, which has assigned a National Long-Term Rating of ‘AAA(lka)’ with a Stable Outlook.
In discussing the Group’s performance and future outlook, Chairman & Chief Executive Mr. Mohan Pandithage remarked, “Our strong start to the year highlights the diversity of our portfolio, the resilience of our businesses, and our commitment to executing our strategic objectives. As industries evolve both locally and globally, we are continuously adapting our portfolio to align with emerging market trends, new customer demands, and long-term growth opportunities. We are optimistic about the prospects ahead and confident in the Group’s capability to build on this positive momentum as we advance into the next phase of Hayleys’ growth.”
The Group remains committed to sustainable growth, focusing on enhancing its economic contributions while progressively lowering the environmental impact of its operations. With a workforce exceeding 38,300 employees, Hayleys emphasizes its significant role in job creation and improving livelihoods across its operations. Despite an expanded operational footprint and increased activity levels, the rise in Scope 1 and 2 GHG emissions was limited to 2%, while emissions intensity saw an 18% decline.
Moreover, Hayleys is actively refining its portfolio to address evolving industry dynamics and emerging growth opportunities. Recent investments and capacity expansions in select high-potential sectors are diversifying the Group’s earnings and positioning it favorably for future growth, with these ventures anticipated to contribute significantly as they develop and mature.
The Board of Directors of Hayleys PLC comprises Chairman & Chief Executive Mohan Pandithage, Co-Chairman Dhammika Perera, along with members Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral, PC, Ruwan Waidyaratne, Jayanthi Dharmasena, Rohan Karr, Gamini Gunaratne, Timothy Speldewinde, Yohan Perera, Jonathan Alles, and Rumal Fernando.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
