Hayleys Fabric’s performance took an unexpected turn due to the recent floods that occurred in the month of May. May and June cumulatively saw a total loss of 150 tons of sales which resulted in the first quarter ending with a net loss (before tax) of USD 162,648 and a turnover of USD 13 million.
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, 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 second quarter.
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