|
Company News
Hayleys Electronics — profit growth
More than 50 partners rewarded with overseas tripsHayleys Electronics Limited, a local market leader in consumer electronic appliances, recorded its most successful year to date in 1999-2000, ending the financial year with a record 150 per cent growth in profits.
This performance made consumer electronics the main contributor to the profits of the Hayleys Electronics Group, which includes the lighting business, which also performed excellently, the company’s Managing Director Sujiva Dewaraja said.
Announcing details of Hayleys Electronics’ performance at the company’s annual Partners’ Convention, Mr. Dewaraja said although consumer demand generally was flat during this period, the market for consumer electronics, particularly colour television receivers, had been noticeably buoyant, growing by an estimated 50 per cent.
He said the performance of Hayleys Electronics was especially noteworthy because many of the company’s competitors, including the larger players, had reported tougher conditions and reduced margins. "The economy’s rate of growth was below expectations, and competition hotted up with new players starting up by the day," Mr. Dewaraja noted.
However, Hayleys Electronics achieved record growth despite these adverse conditions, due to a reduction in import duties, gaining of access to the duty free complex at the airport, the launch of attractive easy payment schemes in collaboration with the Bank of Ceylon and the People’s Bank, the introduction of more brands to the company’s product portfolio, and a very successful programme of incentives to partners and employees at all levels, he explained.
This recognition of the role played by the company’s partners, was also reflected in the renaming of the company’s annual dealer convention as "Partners Convention" this year, the 16th year of the event, Mr. Dewaraja pointed out. Reinforcing this message, the event was themed "Let’s achieve together".
A highlight of the event was the presentation of more than 50 air tickets to destinations such as Netherlands, Singapore, Thailand and India as well as trophies and certificates to top performers among dealers, sales representatives, showroom personnel, service agents and personnel of the bank branches that participated in the easy payment schemes. The presentation of 50 overseas trips by one company at a single function is also possibly a record in the local consumer marketing sector, Mr. Dewaraja said.
He complimented the relevant government authorities for the constructive dialogue and consistent policy maintained in respect to tariff reform. "The current duty structure, though somewhat disadvantageous to our own manufacturing operation, is the one that best balances the interests of all parties in our business sector, and creates a much more level playing field," Mr. Dewaraja added.
Consumer prices moved upward in May mainly due to increase in prices of certain major food items. Nevertheless, the annual average inflation rate (percentage increase in the general price level) declined further in May reaching the lowest level since October 1998. This was due to the greater price stability maintained since the fourth quarter of 1998 mainly through increased production of essential consumer goods such as rice, vegetables and coconuts and improved distribution and marketing facilities.
The Colombo District Consumers’ Price Index (CDCPI) of the Central Bank increased by 0.9 per cent in May reflecting an average inflation rate of 1.4 per cent. The point to point change in the Index (May 2000 over May 1999) registered an increase of 1.2 per cent. Declining trend in the prices of rice since February due to increase in supply with the commencement of the Maha harvest helped to moderate inflation to a great extent.
The prices of some varieties of vegetables, most varieties of fish, potatoes, onions, limes, beef, green gram and some varieties of dried fish increased during the month. The increase in the prices of fish was due to rough sea in the South Western Coast. The rise in prices of vegetables also was due to the seasonality of productions. The effect of these price increases was partly offset by the decline in the prices of rice, dried chillies, coconuts, eggs and sugar.
The Colombo Consumers’ Price Index (CCPI) published by the Government Department of Census and Statistics increased by 0.8 per cent to 2505.4 in May. The annual average inflation rate in May as measured by this index declined to 3.4 per cent from 3.8 per cent in April. The point to point change in the Index was 2.4 per cent compared to 3.7 per cent in April.
According to the latest figures available for the Greater Colombo Consumers’ Price Index (GCPI) computed by the Department of Census and Statistics, the annual average inflation as at April was 1.7 per cent compared to 2.2 per cent in March, 2000.
Hayleys Photoprint: satisfactory growth in trying conditions
Hayleys Photoprint Limited (HPL), the imaging, information, paper, healthcare and office automation products specialist of the Hayleys Group, has announced the payment of an effective dividend of 34.7 per cent to individual shareholders for the financial year ending March 31, on the back of what the company has described as a satisfactory performance in trying business conditions.
HPL, whose flagship brands are Fujifilm, Conqueror and Xerox, has reported a turnover of Rs. 410 million in the year under review, up 17 per cent over 1998-99. Pre-tax profits rose 7 per cent from 16 million to 17 million in the same period, but net profits declined marginally from Rs 10.8 million to Rs 10.6 million, due to pressure on margins, higher operating costs and a loss from the sale of the company’s investments in unit trusts.
According to its annual report released to shareholders last week, the Board of Hayleys Photoprint has recommended a final dividend of 10 per cent in addition to the interim dividend of 12.5 per cent declared in February 2000. With tax credit for Advance Corporation Tax available to individual shareholders, the total distribution represents an effective dividend of 34.7 per cent, or Rs 3.47 per share.
In his review, Hayleys Group Chairman Sunil Mendis notes that whilst Printers’ Requisites made the most significant contribution to HPL’s profits, the Healthcare Products and Services Department and the Consumer Marketing Department responsible for Fujifilm photographic products also turned in a good performance.
Paying tribute to the Fuji Photo Film Co. of Japan and Arjo Wiggins of UK (manufacturers of Conqueror fine papers and boards) for their support to HPL, Mr. Mendis has observed that the company’s appointment as the new agent for Xerox from April l’ 2000 is a major milestone. Hayleys Photoprint also intends to increase its involvement in the healthcare area, in which it sees considerable growth, he said.
Reviewing the operations of the Company, HPL’s Director/General Manager Ashan Abeyesundere said sales of Fuji colour films grew substantially during the year, bringing the company closer to its objective of achieving market leadership in this area. In the fine papers market, HPL maintained its position as the pre-eminent supplier with its flagship brand Conqueror. The company also retained its dominant position in the X ray market, Mr. Abeyesundere said.
The Board of directors of Hayleys Photoprint comprises Messrs Sunil Mendis (Chairman) Mahendra Amarasuriya (Deputy Chairman), Richard Ebell, E F Edirisinghe, Sujiva Dewaraja, T K Bandaranayake, Ashan Abeyesundere and Jeevan Thiagarajah.
At the four year Treasury Bond auction held on 30th May, 2000, Rs. 1,000 million of 2004 ‘B’ Series and Rs. 1,000 million of 2004 ‘C’ Series Bonds with a coupon rate of 11.25% were offered for sale.
Both the issues were oversubscribed with bids amounting to Rs. 1,565 million and Rs. 1,540 million being received in respect of 2004 ‘B’ series and 2004 ‘C’ series issues respectively. Bids amounting to Rs. 1,000 million were accepted at the yield rates ranging between 12.65% — 13.40% and the weighted average yield amounted to 13.01% for 2004 ‘B’ series Treasury Bonds. As regards Treasury Bond issue of 2004 ‘C’ series, bids amounting to Rs. 1,000 million were accepted at yield rates ranging between 12.66% — 13.51% and the weighted average yield amounted to 13.05%.
Infotel Lanka 2000 Exhibition in Oct.
The draw for stalls by the Principal Sponsors of the Infotel Lanka 2000 exhibition was held on the 27th April at the CINTEC Auditorium situated on West Tower of the World Trade Center, Colombo. Prof. V. K. Samaranayake, Chairman, Council for Information Technology (CINTEC) and the Infotel Lanka Society welcomed the invitees and explained the purpose of the gathering. He spoke of the Infotel Lanka 2000 Exhibition and the International Information Technology Conference to be held in parallel with the exhibition.
The Infotel Lanka 2000 Exhibition is scheduled to be held from 4th October to 8th October 2000 at the Sri Lanka Exhibition and Convention Centre, 12, D. R. Wijewardene Mawatha, Colombo 10 and the conference on the 3rd and 4th October at Hotel Intercontinental, Colombo.
The principal sponsors for this Exhibition are:
> Asia Pacific Institute of Information
Technology
> Board of Investment, Sri Lanka
> Datamini Lanka (Pvt) Ltd.
> Debug Computer Peripherals Ltd.
> EAP Technologies Ltd.
> E-W Information Systems Ltd.
> IDM Computer Studies Ltd.
> Intel Asia Electronics Inc. Singapore
> Lanka Internet Services Ltd.
> Samsung Electronics Ltd.
> Softlogic Trading (Pvt.) Ltd.
> Suntel Ltd.
> Bank of Ceylon — Official Bank
Sponsor
Representatives of each sponsor were present at the draw.
A total of 91 stalls were taken by the Principal Sponsors.
Mr. David Dominic the Executive Director of the Infotel Lanka Society who is organising the exhibition explained to those present the idea of the Software Pavilion, which will be managed by the BOI with the help of the Sri Lanka Association for the Software Industry (SLASI). This pavilion will provide opportunities and the facilities for locally developed software to be presented and demonstrated by their producers. He also stated that facilities would be made available for corporate technical presentations to be made during the International IT Conference, which will be held, from the 3rd October 2000 at the Hotel Intercontinental. He requested those interested to contact him at the Secretariat of the Infotel Lanka Society for further information.
Another feature connected with the Exhibition and the International IT Conference will be the publication of the Exhibition and Business Directory. This directory is to provide a comprehensive source book of the Information Technology and Communication Industry in Sri Lanka. The directory will also include papers presented at the International IT Conference to be held during the time of the exhibition.
