Adverse Weather affects Hayleys Fabric Q1 performance
A pioneer in the knitted fabric industry saw its performance taking an unexpected turn due to the recent floods that occurred in the month of May. The Hayleys Fabric production facility was forced to shut down in the last week of May due to the flooding of Kalu Ganga.The impact of floods rolled over to June as most of employee houses were under water for several days and this resulted in heavy absenteeism and a loss in production volumes by almost half during the first week in June. It is reported that this had been the worst flood in over 30 years in this area.
The month of April generally makes a loss due to the factory closure for 10 days for the Sri Lankan New Year and annual preventive maintenance. The order book was full and the Company was confident in turning around in the months of May and June after covering up losses in April. Unfortunately, May and June cumulatively saw a total loss of 150 tons of sales which resulted in the 1st quarter ending with a net loss (before tax) of USD 162,648/- and a turnover of USD 13 Million. The Company’s own brand ‘INNO’ has made the Company attract higher value products and the order book continues to be full and the Company is confident of recovering its losses during the 2nd Quarter.
Hayleys Fabric PLC is a subsidiary of Hayleys PLC and the Board of Directors comprises Messrs. Mohan Pandithage, Dhammika Perera, Rohan Goonetilleke, Sarath Ganegoda, Haresh Somashantha, Nandajith Somaratne, Ananda Jayatilleka and Dr. Sunill Nawaratne.
