Shareholder

Despite significant external challenges during the year, the Group continued to deliver on its shareholder commitments, achieving commendable profit generation, dividend payments while recording an increase in the share price. Strategic interventions during the year, as detailed across this website

Key shareholder metrics

13%
Increase in share price
Rs. 5.35
Dividends per share
8.94
Price/Earnings ratio
Rs. 9.19
Earnings per share
Rs. 106.88
Net asset value per share

Leadership and Governance

Chairman

Chairman's Message

"Strategic interventions in recent years to build resilience through rationalising and optimising its businesses enabled the Group to navigate the challenges of the year with agility. Despite a decline in the Earnings per Share to Rs. 9.19 (from Rs. 21.80 the previous year) the Group continued to deliver on its shareholder commitments, declaring an interim dividend of Rs. 5.35 in March 2024. The Hayleys share price increased from Rs. 72.50 in April 2023 to close the year at Rs. 82.10, an increase of 13% during the period"

  • Key areas of strategic focus during the year included diversification of the Group's geographical footprints and customer segments while relentlessly pursuing customer-centric innovation and service excellence
  • Consolidated Revenue declined by 10% to Rs. 436.83 bn, with export-oriented sectors affected by the unfavourable exchange rate dynamics
  • Consolidated Profit Before Tax amounted to Rs. 25.34 bn with the Purification, Projects & Engineering and Hand Protection Sectors emerging as key contributors to profitability

  • Governance structures facilitate strong alignment and engagement between the Board and the GMC; the latter convenes weekly facilitating ongoing collaboration and collective decision-making
  • Mr. Timothy Speldewinde and Mr.Yohan Perera were appointed as Independent Non-Executive Directors
  • Listing Rule 9 came into effect from 1st October 2023 with a phased timeline for compliance extending till 1st January 2025 and the Group is fully compliant with the provisions required by 1st April 2024
  • The Board approved a Bribery and Anti-Corruption policy and a Shareholder and Investor Communications Policy during the year

  • Earnings per share of Rs. 9.19
  • Share price increased by 13% during the year to close at Rs. 82.10

  • The International Monetary Fund estimates global growth to continue at the same pace with GDP expanding by 3.2% in 2024.
  • Optimistic on the stabilisation of the domestic economy in 2024, supported by the revival in the tourism industry, stronger remittance flows and improvements in fiscal and external balances
  • Key priorities will include strengthening product capabilities, brands and relationships to drive deeper penetration in selected markets, strategically embedding ESG to derive a competitive advantage, access new markets and optimise resources.
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Corporate Governance

Corporate Governance image
“Hayleys has long since embraced governance principles designed to ensure the longevity and continued excellence of the organisation to drive multi-stakeholder value creation. This approach has enabled the Group to move beyond incremental growth and advance transformational change-leveraging the power of an enterprise-wide approach to corporate governance to deliver on our purpose”

Key Highlights in 2023/24

Compliance to new Listing Rules
Board composition: Appointment of 2 Independent, Non-Executive Directors
Board approval of Bribery and Anti-Corruption Policy and Shareholders and Investor Communication Policy
Introduction of Sector-level ESG risk assessments
Revised Terms of Reference for Nominations and Governance Committee
Key Highlights in 2023/24 image

Board Strength and Composition

The Board consists of 6 Executive Directors and 6 Non-Executive Directors. The size and skill composition of the Board is influenced by the demands of our diverse and complex business landscapes. An appropriate mix of skills, knowledge and experience ensures that the Board is collectively equipped to drive the Group's strategy and value creation

Board composition
Diversity of tenure
Years of Service Number of Directors
< 3 2
3-5 2
5-9 1
> 9 7
Diversity of Age

56.5 Years

Average age
Board skill profile
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Strategic aspirations

The Group's strategy is underpinned by five pillars, formulated by the Strategic Business Development Unit (SBDU) at Hayleys PLC and cascaded to each Sector under the leadership of the Group Management Committee.

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Building resilience through portfolio optimisation
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Customer centricity
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Nurturing inspired teams
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Inclusive business models
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ESG Integration
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Financial capital

The Group leveraged the diversity of its businesses, geographies and markets to remain resilient in a year of volatility and unpredictability. Despite subdued global demand in key markets and the appreciation of the Sri Lankan Rupee during the year, the Group generated a Consolidated Revenue of Rs. 436.83 bn and Profit Before Tax of Rs. 25.34 bn.

Indicator Movement Commentary
Consolidated Revenue
  • 10% decline to Rs. 436.83 bn
  • Revenue was upheld by strong top line growth in Projects & Engineering and Consumer & Retail
  • Export-oriented sectors recorded Revenue contractions
Earnings Before Interest and Tax
  • 30% decline to Rs. 42.72 bn
  • Due to the decrease in Revenue and escalation in Operating Costs
  • Key contributors to EBIT were Transportation and Logistics, Purification and Hand Protection Sectors
Profit Before Tax
  • 41% decline to Rs. 25.34 bn
  • Purification Sector was the largest contributor to PBT, followed by Projects & Engineering and Hand Protection
Total Assets
  • 8% growth to Rs. 446.34 bn
  • Increase in Property, Plant and Equipment driven by investments in Purification, Hand Protection and Transportation & Logistics
Capital and Funding
  • 2% increase in Total Equity to Rs. 125.53 bn
  • 8% increase in Borrowings to Rs. 171.88 bn
  • Despite the increase, gearing levels remained manageable at 1.37X debt to equity ratio
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Portfolio reviews

Sector Performance Highlights in 2023/24 Way forward priorities
Eco Solutions
  • Revenue: Rs. 13.85 bn
  • PBT: Rs. 68 mn
  • Employees: 1,199
  • Carbon footprint: -22%
  • Pursue growth in new applications and markets
  • Supply chain security
  • Optimise business model
Hand Protection
  • Revenue: 43.00 bn
  • PBT: Rs. 4.01 bn
  • Employees: 2,171
  • Carbon footprint: -4%
  • Enhance value added portfolio
  • Strengthen presence in key markets
  • Cost optimisation through digitalisation
Purification
  • Revenue: Rs. 42.74 bn
  • PBT: Rs. 6.11 bn
  • Employees: 1,933
  • Carbon footprint: -6%
  • Grow value-added carbon portfolio
  • Expand regional manufacturing presence
  • Digital transformation
Textiles
  • Revenue: Rs. 49.17 bn
  • PBT: Rs. 3.72 bn
  • Employees: 3,285
  • Carbon footprint: -19%
  • Retention of tier 1 customers
  • Proactive supply chain management
  • Strengthen synthetic fabric positioning
Construction Materials
  • Revenue: Rs. 9.94 bn
  • PBT: Rs. 232 mn
  • Employees: 774
  • Carbon footprint: +7%
  • Develop new export markets
  • Value added propositions
  • Widen brand portfolio
Plantations
  • Revenue: Rs. 18.13 bn
  • PBT: Rs. 3.53 bn
  • Employees: 15,360
  • Carbon footprint: +40%
  • Improving labour productivity
  • Crop diversification
  • Technology and mechanisation
Agriculture
  • Revenue: Rs. 34.88 bn
  • PBT: Rs. 3.02 bn
  • Employees: 1,247
  • Carbon footprint: -4%
  • Cost management and process efficiencies
  • Improve positioning in coconut products
  • Widen product offering in Bangladesh
Consumer & Retail
  • Revenue: Rs. 81.60 bn
  • PBT: Rs. 611 mn
  • Employees: 3,316
  • Carbon footprint: -17%
  • Widen product portfolio with diverse solutions
  • Increased sales orientation
  • Value-added product offerings
Leisure
  • Revenue: Rs. 9.02 bn
  • PBT: Rs. (1.90) bn
  • Employees: 1,660
  • Carbon footprint: +19%
  • Dynamic pricing strategy
  • Diversification of target customer segments
  • Ongoing focus on cost optimisation
Industry Inputs, Power & Energy
  • Revenue: Rs. 9.73 bn
  • PBT: Rs. 1.34 bn
  • Employees: 311
  • Carbon footprint: +68%
  • Capacity expansion in industrial raw materials
  • Product diversification
  • Regional expansion
Transportation & Logistics
  • Revenue: Rs. 91.35 bn
  • PBT: Rs. 3.67 bn
  • Employees: 2,899
  • Carbon footprint: +30%
  • Regional investments in identified markets
  • Implement digital roadmap
  • Enhance technological capabilities
Projects & Engineering
  • Revenue: Rs. 19.80 bn
  • PBT: Rs. 4.33 bn
  • Employees: 1,492
  • Carbon footprint: -4%
  • Consolidate market leadership in solar
  • Efficiency and cost management drive
  • Island-wide penetration of services
Tea Exports
  • Revenue: Rs. 12.20 bn
  • PBT: Rs. 824 mn
  • Employees: 162
  • Carbon footprint: -14%
  • Enhance production capacity
  • Upskilling human capital
  • Increased penetration in key markets
Others
  • Revenue: Rs. 1.44 bn
  • PBT: Rs. 2.38 bn
  • Employees: 387
  • Carbon footprint: -60%
  • HBSI-Expansion of service portfolio and increase penetration in new and existing markets

Way forward

Immediate term priorities
  • Product strategy centered on premium, value-added offerings
  • Optimising working capital to reduce inventory build up
  • Talent retention
  • Optimise funding and borrowing structures through proactive negotiations with banks
Medium-term priorities
  • Strengthen foreign currency generating capabilities through enhancing export-oriented sectors
  • Refine product offerings in tourism sector to cater to anticipated surge in industry
  • Organic and inorganic growth in complementary sectors and businesses
  • Digitalisation to drive efficiencies, enhance productivity and obtain richer data sights