Sri Lanka's multinational blue chip Hayleys PLC has posted a turnover of Rs 16.6 billion in the six months ending September 30, 2008, achieving top line growth of 19 per cent, but recorded lower profits over the corresponding period of last year due to a tough second quarter for its businesses in Global Markets & Manufacturing.

In first half results released to the Colombo Stock Exchange this week the conglomerate reports that profit before tax at Rs 741 million was down 16 per cent, while profit after tax and losses from discontinued operations declined 19 per cent to Rs 377.5 million. Profit attributable to equity holders of the company dipped 11 per cent to Rs 110 million.

Elaborating on the Group's performance, Hayleys Chairman and CEO N. G. Wickremeratne said: "This result was due largely to the Group's Global Markets & Manufacturing businesses being beleaguered by escalating costs and a static US$/SL Rs exchange rate. Despite measures being taken to mitigate their effect, the erosion of margins continued."

He said Purification Products made a substantial contribution, helped by the performance of its overseas operations. The contribution of Textiles remained significant but was much lower than last year. The Hand Protection Sector was seriously impacted by the hostile environment and by continuing losses in DPL Thailand, and the Fibre business fared badly.

"The Agriculture & Agri Business Cluster performed well, with the performances of Agri-inputs and Plantations proving to be quite outstanding. The Transportation Sector performed well as it has done over the last several years,"Wickremeratne said.