In the midst of a complex environment filled with turbulence and uncertainty, Hayleys emerged triumphant – continuing steadily along an exceptional journey of resilience and growth.
Unprecedented growth in an unprecedented year
Hayleys proudly emerges as the number one Company in the Business Today Top 40. In a historic milestone, Hayleys, the largest and most diversified conglomerate in Sri Lanka, recorded the highest profit of Rs. 14.05 billion in its rich 143-year heritage.
Spearheaded by two of the most revered corporate stalwarts – Illustrious business tycoon and daring trailblazer Dhammika Perera, Co-Chairman Hayleys, and the unwavering captain at the helm, Mohan Pandithage, Chairman and Chief Executive, Hayleys, the conglomerate has flourished under their leadership. The astute and agile strategy implemented boldly embraced change and allowed the Company to rise above in an unprecedented and tumultuous year.
With pre-tax earnings of Rs.19.23 billion, the Conglomerate recorded a remarkable increase over the previous year, with 249%.
Revenue increased by 15%, with Hand Protection, Consumer & Retail, and Agriculture as the top contributors. Gross Profit increased by 22% to Rs.61.16 billion. Profit after tax for the Group increased by 385% to Rs.14.05 billion in FY 2020/21 compared to Rs.2.89 billion in the previous year.
It was the prerogative of Hayleys leadership to protect the livelihoods of its 30,765 employees. Each sector conducted a detailed analysis of any potential increase in revenue through identified savings strategies. This developed into a well-articulated roadmap to successfully navigate the choppy and unchartered waters of 2020/21. The governance structure of Hayleys was further enhanced with the Board having increased vigilance and oversight, mainly focusing on health & safety, risk, and liquidity. The Group Management Committee (GMC) comprising all sector heads was pivotal to executing the plan approved by the Board.
Leaning on digitalization in a no-contact world
Digitalization was fundamental to this laudable success. Investments made in migrating processes to digital platforms paid dividends over the years as the Company adopted all office processes to remote working overnight. This included reception and call center activity. Cybersecurity was strengthened because of increased remote access to systems and escalating cyber threats. With core operational systems stabilized within a short time, attention was turned to applications to extend the customer value proposition. E-commerce platforms were enhanced to enable online purchases supported by the transportation sector with additional features.
Driving the economy of the Nation
The Hayleys Group significantly boosted the economic growth of Sri Lanka by their impressive contribution of 4.22% to the country’s direct and indirect exports. Foreign currency earnings of the Group exceeded USD 600 million. Total value created by the Group amounted to Rs.68.99 billion, 18% over the previous year, and 85% of this was in Sri Lanka, and the balance was from the Group’s overseas operations.
The Group paid Rs.12.5 billion in revenues to governments, of which Rs.11.23 billion was to the government of Sri Lanka.