The continuing buoyancy in the plantations and useful contributions from the transportation sector largely covering freight has enabled Hayleys Ltd., one of the country's most diversified companies, to improve profitability in the first quarter of the current financial year.

An improved performance has been achieved by the Hayleys Group despite reverses suffered by subsidiary Haycarb and associate Dipped Products as a result of currency depreciation of competitors located in South East Asia. Both Haycarb's activated carbon and Dipped Products' rubber gloves face margin pressure as a result of heavy devaluations helping competitors in S.E. Asia.

Hayleys Chairman Sunil Mendis said that the group was seeking to take advantage of trading opportunities in the import sector to compensate for losses in its traditional value added exports on account of currency depreciation in competing countries.

Group turnover during the quarter under review had grown to Rs. 1.88 billion from Rs. 1.75 billion a year earlier. The operating profit at Rs. 287.9 million compared with Rs. 242 million earned in the first quarter of the previous year, unaudited results published by the company reveals.

Interest charges were up slightly to Rs. 72.6 million from Rs. 64.6 million a year earlier while other income was down to Rs. 3.7 million from Rs. 7.7 million a year earlier. However, the share of associate companies' profits compensated. They were up to Rs. 13.4 million from Rs. 8.2 million a year earlier.

The pre-tax profit of Rs. 234.2 million compared with Rs. 193.1 a year earlier. Taxation was flat at Rs. 45.9 million (Rs. 45.3 million a year earlier) and the after tax profit of Rs. 188.2 million compared with Rs. 149.8 million a year earlier.

Minority interest, however, had grown to Rs. 106.2 million (largely on account of the plantation companies) from Rs. 69.1 million in the first quarter of the previous year. The Hayleys Group bottom line attributable to its shareholders therefore read Rs. 82 million for the first quarter, very close to the Rs. 80.7 million earned in the first quarter of the previous year.

The comparative figure for the year ended March 31, 1998, was Rs. 418.9 million.