Hayleys MGT Knitting Mills, a cotton and synthetic jersey fabric manufacturing business which is owned by Sri Lanka’s Hayleys Group's, has reported a net profit of US$ 1.96 million for the nine months ending 31 December 2009, on a turnover of US$ 37 million. According to figures released to the Colombo Stock Exchange last week, both turnover and profit declined in the third quarter of the year, when compared to the corresponding period of last year.

Hayleys MGT Jt. Managing Director Bandula Weerasinghe told Sri Lanka’s Daily Mirror that prices had fallen in the third quarter and volumes had also declined as the company had lost some orders to lower-priced overseas competitors. However, the company said it had regained the lost orders in the current quarter and expects a better year-end result.

The company achieved a 23 per cent drop in its cost of sales through a combination of lower energy costs and lean production practices, Mr. Weerasinghe said. However, the drop in prices and volumes in the third quarter had resulted in a decline of 7% in profits to shareholders.

The outlook for the final quarter and the year as a whole would be enhanced by the savings generated by the company's new bio mass steam generator and earnings from the recently acquired state-of-the-art rotary and digital printing facility, Mr. Weerasinghe disclosed.

A major supplier to top international brands such as Marks & Spencer, Next, Nike, Tesco and Decathlon, Hayleys MGT says it is the first fabric manufacturer in Sri Lanka to be certified as compliant with the stringent Social Accountability Standard, SA8000.  The standard represents a comprehensive and flexible system for the management of ethical workplace conditions throughout global supply chains and assures a humane workplace through respect for workers rights.

Hayleys MGT has a production capacity of 4 million metres of fabric per month at its state-of-the-art plant at Narthupana Estate in the Kalutara District. The company is a key supplier of high quality knitted fabric to the Sri Lankan apparel industry and to export markets.

Source: www.dailymirror.lk