3rd February 2022, Colombo: Hela Apparel Holdings Limited (the holding company of the Hela Clothing Group) ended its third quarter on a high note, having exceeded its annual performance for FY2020/21 within the first 9 months of the current financial year. The Group recorded year-to-date revenue of Rs 41.6 billion, which represents a growth of 88% compared to the same period of the previous financial year, while Profit-After-Tax (PAT) for the first nine months of the year reached Rs 1.1 billion, representing a year-on-year increase of 173%. Furthermore, the company’s top line grew by 44% in the third quarter compared to the corresponding period of the previous financial year – a continuation of the positive trend in sales volumes seen in the first half of the year.
Speaking about the Group’s financial and business performance, A. R. Rasiah, Chairman of Hela Apparel Holdings, explained, “These results reflect the continuation of strong consumer demand conditions in our main markets in Europe and North America, as well as increased penetration with our major customers as a result of the Group’s strategic expansion initiatives, such as the establishment of partnered capacity in Tanzania and initial steps taken to establish operations in Egypt. In addition, the operational turnaround of Hela’s second factory in Ethiopia and first focused on the manufacturing of bras was successfully completed as planned in the third quarter.”
These results come alongside Hela’s record-breaking IPO, which sought to raise Rs 4 billion for a 20.5% stake in the company and was oversubscribed by 5.4 times on its opening day. Shares are set to start trading on the Main Board of the Colombo Stock Exchange on Monday 7th February.
“Looking forward, the Group’s order book remains strong and we expect robust demand conditions to persist as the negative impact of the pandemic continues to fade. While global inflationary pressures and supply chain disruptions are potential risk factors, we are making steady progress on several risk mitigation initiatives. These include the localization of raw material supply chains to reduce freight costs and increased operational efficiency through a range of cost management strategies. Overall the business remains on a positive trajectory and we expect our strategic expansion initiatives to help sustain our current growth momentum,” he further added.
Hela Apparel Holdings is a company built on a culture of speed, agility, and strong customer relationships, providing responsive and dynamic end-to-end supply chain solutions to global apparel brands. The company is a leader in ethical and sustainable apparel manufacturing, having received numerous global accolades in this regard and recently becoming a signatory to the UN Global Compact. Through its global expansion initiatives, the company has also emerged as a leader in Africa’s apparel manufacturing revolution. The Group provide manufacturing solutions to some of the world’s top luxury apparel brands including Tommy Hilfiger, Calvin Klein, Michael Kors, and VF Corp, through its 11 manufacturing facilities located in Sri Lanka, Kenya, and Ethiopia, and is in the process of expanding its global footprint into Egypt.