Sector Reviews

Fibre

Business Domain

Hayleys Fibre provides innovative eco-friendly fibre-based solutions to the world. The product range includes a wide range of floor covering, cleaning devices for both domestic and industrial use, rubberised coir mattreses, cushions and a range of erosion control and horticulture products. The Sector comprises 13 companies, with 9 based locally. Exports accounted for 86% of turnover.

Key Performance Indicators

Indicator	Measure	Unit	FYE 31st March
			2013	2012	2011
Growth	Revenue	Rs. mn	5,355	5,420	3,987
	Earnings Before Interest and Tax	Rs. mn	322	283*	-127
	Profit After Tax	Rs. mn	143	78	-202
	Assets (Avg)	Rs. mn	6,172	6,034	5,420
	Capital Employed	Rs. mn	4,607	4,320	4,265
Profitability	Return on Average Capital Employed**	%	7.0	6.6	-3.0
Liquidity	Current Ratio	Times	1.0	1.0	1.1
Stability	Gearing	%	27.2	34.8	29.8
Asset utilisation	Asset Turnover Ratio	Times	1.3	1.2	1.3
Productivity	Ebit per Employee	Rs. mn	0.231	0.176	0.81

* Inclusive of Capital Gains
** Excluding Real Estate

Operations

The prevailing depressed global economic climate, hike in energy prices and limited access to long-term capital were the key challenges faced during the year. To counter the challenges, Hayleys Fibre sector carried out many changes in their operations. This included rationalisation of plants, implementation of LEAN manufacturing and operational merger of three companies within the same business portfolio. The sector also developed some breakthrough new products and entered a few ‘Blue ocean Markets’ to stay ahead of the competition.

Strategies in Action

Continuing with its spirit of innovation, the Fibre Sector developed a range of new products during the year, some of which are awaiting patents. The past five years have earned the Sector over 400 patents, thus reinforcing a legacy of transforming abstract ideas into concrete facts.

Pursuing our quest for maintaining high and consistent quality, systems have been revamped. Training programmes on ‘Quality systems Audit’ as per ISO 9001:2008 Standards were conducted by the Sri Lanka Standards Institute.

To achieve closer alignment with its products and brand Hayleys Exports PLC changed its name to Hayleys Fibre PLC in November 2012, thus forging an instant link with all Fibre Sector products marketed around the world under the ‘Hayleys Fibre’ brand name.

Outlook

We are confident of continued profitable growth, but are also mindful of challenges from competition and pressures on margins, given the sluggish world economy and the increased cost of resources and energy.