HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES Condensed Statement of Profit or Loss
(All amounts are in Sri Lankan Rupees Thousands)
Revenue from contracts with customers
Cost of sales
Gross profit
Distribution costs
Administrative costs
Other income
Other gains / (losses) - net
Operating loss
Finance income
Finance costs
Finance (costs) / income - net
Share of loss of equity accounted investee, net of tax
Loss before income tax
Income tax reversal
Loss for the period
Profit / (loss) attributable to:
Owners of the Company
Non-controlling interests
Loss for the period
Loss per share for loss attributable to the equity holders of the Company
Basic / diluted loss per share
Group | Company | ||
Quarter ended 31 December | Quarter ended 31 December | ||
2024 | 2023 | 2024 | 2023 |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
18,599,380 | 14,293,333 | - | - |
(17,225,845) | (13,099,579) | - | - |
1,373,535 | 1,193,754 | - | - |
(865,687) | (312,157) | (482) | - |
(3,070,697) | (1,994,613) | (17,468) | (2,417) |
48,942 | 137,073 | - | - |
(8,300) | 36,397 | (260) | (22) |
(2,522,207) | (939,546) | (18,210) | (2,439) |
44,277 | 17,783 | 14 | 17 |
(1,084,634) | (1,050,550) | - | - |
(1,040,357) | (1,032,767) | 14 | 17 |
(20,958) | (9,733) | - | - |
(3,583,522) | (1,982,046) | (18,196) | (2,422) |
134,473 | 141,917 | - | - |
(3,449,049) | (1,840,129) | (18,196) | (2,422) |
(3,407,779) | (1,878,916) | (18,196) | (2,422) |
(41,270) | 38,787 | - | - |
(3,449,049) | (1,840,129) | (18,196) | (2,422) |
LKR | LKR | LKR | LKR |
(2.08) | (1.43) | (0.01) | (0.00) |
1
HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES Condensed Statement of Comprehensive Income
(All amounts are in Sri Lankan Rupees Thousands)
Group | Company | |||
Quarter ended 31 December | Quarter ended 31 December | |||
2024 | 2023 | 2024 | 2023 | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Loss for the period | (3,449,049) | (1,840,129) | (18,196) | (2,422) |
Other comprehensive income: | ||||
Items that will be reclassified to profit or loss | ||||
Currency translation differences | (808,802) | 6,519 | (188,247) | (10,927) |
Other comprehensive income / (loss) | (808,802) | 6,519 | (188,247) | (10,927) |
for the period, net of tax | ||||
Total comprehensive loss for the period | (4,257,851) | (1,833,610) | (206,443) | (13,349) |
2
HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES Condensed Statement of Profit or Loss
(All amounts are in Sri Lankan Rupees Thousands)
Revenue from contracts with customers
Cost of sales
Gross profit
Distribution costs
Administrative costs
Other income
Other gains / (losses) - net
Operating loss
Finance income
Finance costs
Finance (costs) / income - net
Share of loss of equity accounted investee, net of tax Loss before income tax
Income tax reversal
Loss for the period
Profit / (loss) attributable to:
Owners of the Company
Non-controlling interests
Loss for the period
Group | Company | ||
Nine months ended 31 December | Nine months ended 31 December | ||
2024 | 2023 | 2024 | 2023 |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
61,546,627 | 48,521,822 | - | - |
(53,315,087) | (44,881,225) | - | - |
8,231,540 | 3,640,597 | - | - |
(2,633,187) | (1,552,147) | (489) | - |
(9,443,269) | (6,946,136) | (61,641) | (7,293) |
554,551 | 212,623 | - | - |
(287,182) | 347,832 | (480) | 3 |
(3,577,547) | (4,297,231) | (62,610) | (7,290) |
154,363 | 33,202 | 44 | 65 |
(3,284,476) | (2,965,618) | (152) | - |
(3,130,113) | (2,932,416) | (108) | 65 |
(64,786) | (54,255) | - | - |
(6,772,446) | (7,283,902) | (62,718) | (7,225) |
308,403 | 889,679 | - | - |
(6,464,043) | (6,394,223) | (62,718) | (7,225) |
(6,354,253) | (6,488,125) | (62,718) | (7,225) |
(109,790) | 93,902 | - | - |
(6,464,043) | (6,394,223) | (62,718) | (7,225) |
Loss per share for loss attributable to the | ||||
equity holders of the Company | LKR | LKR | LKR | LKR |
Basic / diluted earnings / (loss) per share | (3.88) | (4.93) | (0.04) | (0.01) |
3
HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES Condensed Statement of Comprehensive Income
(All amounts are in Sri Lankan Rupees Thousands)
Group | Company | |||
Nine months ended 31 December | Nine months ended 31 December | |||
2024 | 2023 | 2024 | 2023 | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Loss for the period | (6,464,043) | (6,394,223) | (62,718) | (7,225) |
Other comprehensive income: | ||||
Items that will be reclassified to profit or loss | ||||
Currency translation differences | (520,458) | (206,345) | (226,077) | (70,190) |
Other comprehensive income / (loss) for the | ||||
period, net of tax | (520,458) | (206,345) | (226,077) | (70,190) |
Total comprehensive loss for the period | (6,984,501) | (6,600,568) | (288,795) | (77,415) |
4
HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES
Condensed Statement of Financial Position
(All amounts are in Sri Lankan Rupees Thousands)
Group | Company | |||||
31.12.2024 | 31.03.2024 | 31.12.2023 | 31.12.2024 | 31.03.2024 | 31.12.2023 | |
(Unaudited) | (Audited) | (Unaudited) | (Unaudited) | (Audited) | (Unaudited) | |
ASSETS | ||||||
Non-current assets | ||||||
Property, plant and equipment | 5,741,142 | 6,768,862 | 8,813,052 | - | - | - |
Investment property | 1,240,123 | 1,256,500 | 553,950 | - | - | - |
Right-of-use assets | 2,983,979 | 3,986,043 | 2,674,685 | - | - | - |
Intangible assets | 12,544,936 | 13,161,576 | 11,842,770 | 22,858 | 26,354 | - |
Investment in subsidiaries | - | - | - | 7,706,531 | 6,341,683 | 6,786,876 |
Investments accounted for using the equity | ||||||
method | 150,822 | 226,134 | 231,601 | - | - | - |
Deferred tax assets | 3,153,440 | 3,074,839 | 2,147,409 | - | - | - |
Other financial assets at amortized cost | 524,387 | 602,548 | 194 | - | - | - |
Total non-current assets | 26,338,829 | 29,076,502 | 26,263,661 | 7,729,389 | 6,368,037 | 6,786,876 |
Current assets | ||||||
Inventories | 11,715,889 | 8,478,114 | 7,140,018 | - | - | - |
Trade and other receivables | 15,691,529 | 15,266,312 | 10,422,219 | 3,533 | 22,073 | - |
Other assets | 3,307,067 | 3,067,359 | 4,452,187 | - | 2,834 | 156 |
Income tax receivables | 297,085 | 284,437 | 129,062 | 71 | 73 | - |
Other financial assets at amortized cost | 245,978 | 257,507 | 292,926 | - | - | - |
Cash and cash equivalents | 6,324,111 | 8,314,419 | 2,958,045 | 4,803 | 5,058 | 14,745 |
Total current assets | 37,581,659 | 35,668,148 | 25,394,457 | 8,407 | 30,038 | 14,901 |
Total assets | 63,920,488 | 64,744,650 | 51,658,118 | 7,737,796 | 6,398,075 | 6,801,777 |
EQUITY | ||||||
Stated capital | 7,377,504 | 5,780,678 | 5,780,678 | 7,377,504 | 5,780,678 | 5,780,678 |
Accumulated losses | (8,064,697) | (1,710,444) | (8,022,613) | (2,382,127) | (2,319,409) | (2,308,064) |
Other reserves | 1,233,869 | 1,233,869 | 778,937 | 93,841 | 93,841 | 92,618 |
Exchange equalization reserve | 4,393,605 | 4,914,063 | 5,914,246 | 2,489,893 | 2,715,970 | 3,189,581 |
Capital and reserves attributable to | ||||||
owners of the Company | 4,940,281 | 10,218,166 | 4,451,248 | 7,579,111 | 6,271,080 | 6,754,813 |
Non-controlling interests | (53,694) | 56,096 | 410,293 | - | - | - |
Total equity | 4,886,587 | 10,274,262 | 4,861,541 | 7,579,111 | 6,271,080 | 6,754,813 |
LIABILITIES | ||||||
Non-current liabilities | ||||||
Borrowings | 4,143,042 | 4,322,054 | 4,249,908 | - | - | - |
Deferred tax liabilities | 1,303,341 | 1,476,608 | 1,531,598 | - | - | - |
Lease liabilities | 2,429,671 | 3,134,053 | 2,184,708 | - | - | - |
Employee benefit obligations | 784,510 | 735,923 | 549,993 | - | - | - |
Total non-current liabilities | 8,660,564 | 9,668,638 | 8,516,207 | - | - | - |
Current liabilities | ||||||
Trade and other payables | 18,846,279 | 16,012,782 | 10,796,178 | 158,685 | 120,427 | 46,381 |
Lease liabilities | 797,498 | 1,064,156 | 512,074 | - | - | - |
Income tax liabilities | - | 156,929 | 330,250 | - | - | 583 |
Borrowings | 30,729,560 | 27,567,883 | 26,641,868 | - | 6,568 | - |
Total current liabilities | 50,373,337 | 44,801,750 | 38,280,370 | 158,685 | 126,995 | 46,964 |
Total liabilities | 59,033,901 | 54,470,388 | 46,796,577 | 158,685 | 126,995 | 46,964 |
Total equity and liabilities | 63,920,488 | 64,744,650 | 51,658,118 | 7,737,796 | 6,398,075 | 6,801,777 |
LKR | LKR | LKR | LKR | LKR | LKR | |
Net assets per share | 3.02 | 7.76 | 3.38 | 4.63 | 4.76 | 5.13 |
I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act, No. 07 of 2007.
Sgd.
Group Chief Financial Officer : Ms Julie Bromilow
Date: 11th February 2025
The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved and signed for and on behalf of the Board of Directors.
Sgd. | Sgd. |
Director : Mr A R Rasiah | Director : Mr P L D Jinadasa |
Date: 11th February 2025 | Date: 11th February 2025 |
5
HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES Condensed Statement of Cash Flows
(All amounts are in Sri Lankan Rupees Thousands)
Group | Company | |||
Nine months ended 31 | Nine months ended 31 | |||
December | December | |||
2024 | 2023 | 2024 | 2023 | |
Loss before income tax from continuing operations | (6,772,446) | (7,283,902) | (62,718) | (7,225) |
Adjustments for: | ||||
Depreciation and amortization | 1,659,243 | 1,047,656 | 2,805 | - |
Net interest expenses | 3,130,113 | 2,932,416 | (108) | (65) |
Retirement benefits obligations provision | 145,992 | 120,981 | - | - |
Provision for impairment of debtors | (36,324) | - | - | - |
Share based payment expenses | - | 3,710 | - | - |
Share of loss from joint Ventures | 64,786 | 54,255 | - | - |
Changes in working capital | ||||
- (Increase) / decrease in inventories | (3,557,939) | 4,455,189 | - | - |
- (Increase) / decrease in trade and other receivables | (1,289,301) | (776,766) | 21,127 | 14,545 |
- Increase / (decrease) in trade and other payables | 3,364,280 | (1,174,986) | 36,106 | (1,563) |
Cash (used in) / generated from operations | (3,291,596) | (621,447) | (2,788) | 5,692 |
Retirement benefits obligations paid | (76,746) | (101,776) | - | - |
Income tax paid | (165,695) | (199,445) | - | - |
Interest paid | (3,229,971) | (2,965,618) | - | - |
Net cash (outflow) / inflow from operating activities | (6,764,008) | (3,888,286) | (2,788) | 5,692 |
Cash flows from investing activities | ||||
Investments made in subsidiaries | - | - | (1,580,725) | - |
Net movement of property, plant and equipment and intangible | ||||
assets | (24,830) | (612,685) | - | - |
Interest received / (paid) | 154,363 | 33,202 | 108 | 65 |
Net cash (outflow) / inflow from investing activities | 129,533 | (579,483) | (1,580,617) | 65 |
Cash flows from financing activities | ||||
Principal elements of lease payments | (965,809) | (386,079) | - | - |
Net borrowings | 3,980,638 | 3,955,093 | - | - |
Advance receipt on share issue | 1,596,826 | - | 1,596,826 | - |
Net cash inflow / (outflow) from financing activities | 4,611,655 | 3,569,014 | 1,596,826 | - |
Net increase / (decrease) in cash and cash equivalents | (2,022,820) | (898,755) | 13,421 | 5,757 |
Cash and cash equivalents at beginning of the period | 8,314,419 | 3,906,000 | 5,058 | 8,804 |
Currency translation differences | 32,512 | (49,200) | (13,676) | 184 |
Cash and cash equivalents at end of the Period | 6,324,111 | 2,958,045 | 4,803 | 14,745 |
6
HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES Condensed Statement of Changes in Equity
(All amounts are in Sri Lankan Rupees Thousands) Group
Attributable to owners of the Company
Stated | Retained | Other | Exchange | Total | Non- | Total | |
capital | earnings | reserves | equalization | controlling | equity | ||
reserve | interests | ||||||
Balance at 1 April 2023 | 5,754,575 | (1,534,488) | 801,331 | 6,120,591 | 11,142,009 | 316,391 | 11,458,400 |
Profit for the year | - | (373,276) | - | - | (373,276) | 24,380 | (348,896) |
Total comprehensive income for the year | - | (373,276) | - | - | (373,276) | 24,380 | (348,896) |
Currency translation difference | (995,869) | (995,869) | - | (995,869) | |||
Revaluation gain arising from the transfer of property, plant and equipment to | |||||||
investment property | 600,218 | 600,218 | 600,218 | ||||
Transfer of deferred income tax impact on revaluation gain arising from the | |||||||
transfer of property, plant and equipment to investment property | 108,182 | (108,182) | - | ||||
Remeasurement of post employment benefit obligation | (144,696) | (144,696) | (144,696) | ||||
Deferred income tax on employee benefit obligation | 35,803 | 35,803 | 35,803 | ||||
Total comprehensive income for the year | - | (373,987) | 492,036 | (995,869) | (877,820) | 24,380 | (853,440) |
Transfer from translation reserve to retained earnings | 227,032 | 56,183 | - | 283,215 | (283,214) | 1 | |
Employee share option plan - value of employee services | - | - | 4,932 | - | 4,932 | - | 4,932 |
Transfers on Investment property classification | (29,001) | (94,510) | (210,659) | (334,170) | (1,461) | (335,631) | |
Issue of shares under Employees Share Ownership Plan | 26,103 | - | (26,103) | - | - | - | - |
Balance at 31 March 2024 | 5,780,678 | (1,710,444) | 1,233,869 | 4,914,063 | 10,218,166 | 56,096 | 10,274,262 |
Balance at 1 April 2024 | 5,780,678 | (1,710,444) | 1,233,869 | 4,914,063 | 10,218,166 | 56,096 | 10,274,262 |
Loss for the Period | - | (6,354,253) | - | - | (6,354,253) | (109,790) | (6,464,043) |
Total comprehensive income for the year | - | (6,354,253) | - | - | (6,354,253) | (109,790) | (6,464,043) |
Currency translation difference | - | - | (520,458) | (520,458) | - | (520,458) | |
Proceeds from Rights issue of ordinary shares | 1,596,826 | - | - | - | 1,596,826 | - | 1,596,826 |
Balance at 31 December 2024 | 7,377,504 | (8,064,697) | 1,233,869 | 4,393,605 | 4,940,281 | (53,694) | 4,886,587 |
7
HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES Condensed Statement of Changes in Equity
(All amounts are in Sri Lankan Rupees Thousands) Company
Stated capital | Other | Retained | Exchange | Total | |
reserves | earnings | equalization | |||
/(accumulated | reserve | ||||
losses) | |||||
Balance at 1 April 2023 | 5,754,575 | 115,012 | (2,300,839) | 3,259,771 | 6,828,519 |
Loss for the year | - | - | (18,570) | - | (18,570) |
Other comprehensive income | - | - | - | (543,801) | (543,801) |
Total comprehensive income for the year | - | - | (18,570) | (543,801) | (562,371) |
Issue of shares under Employees Share Ownership Plan | - | 4,932 | - | - | 4,932 |
Employee share option plan - value of employee services | 26,103 | (26,103) | - | - | - |
Balance at 31 March 2024 | 5,780,678 | 93,841 | (2,319,409) | 2,715,970 | 6,271,080 |
Balance at 1 April 2024 | 5,780,678 | 93,841 | (2,319,409) | 2,715,970 | 6,271,080 |
Loss for the year | - | - | (62,718) | - | (62,718) |
Other comprehensive income | - | - | - | (226,077) | (226,077) |
Total comprehensive income for the year | - | - | (62,718) | (226,077) | (288,795) |
Exercise of share options | 1,596,826 | - | - | - | 1,596,826 |
Balance at 31 December 2024 | 7,377,504 | 93,841 | (2,382,127) | 2,489,893 | 7,579,111 |
8
HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES
Notes to the Financial Statements
(All amounts are shown in Sri Lankan Rupees Thousands unless otherwise stated)
1 Operating segments
-
Description of segments and principal activities
The Hela Group's internal organisation and management is structured based on operating segments which are determined by the nature of their principal business activities. The measurement policies the Group uses for segmental reporting under SLFRS 8 are the same as those used in its financial statements.
The Group is currently organized into two reportable segments, the Private Label Manufacturing Division and the Brand Licensing Division. The operations of the Brand Licensing Division are carried out of by the Company's fully owned subsidiary, Hela Brands Limited, and its subsidiaries. The other companies in the Group carry out the activities of the Private Label Manufacturing Division. Each segment is managed by a CEO who acts as segment manager, the performance of each segment is monitored by the Group CEO, and strategic decisions are made on the basis of segment operating results. - Summarized statement of comprehensive income for the quarter ended 31 December 2024
LKR"000" | Private Label Manufacturing | |||||
Division | Brand Licensing Division | Group | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Revenue | 11,963,086 | 14,293,333 | 6,636,294 | - | 18,599,380 | 14,293,333 |
Operating profit/ (loss) | (2,575,880) | (939,546) | 53,673 | - | (2,522,207) | (939,546) |
Net finance (cost)/income | (1,047,922) | (1,032,767) | 7,565 | - | (1,040,357) | (1,032,767) |
Profit/ (loss) before taxation | (3,644,760) | (1,982,046) | 61,238 | - | (3,583,522) | (1,982,046) |
Income tax reversal | 134,473 | 141,917 | - | - | 134,473 | 141,917 |
Profit/ (loss) for the period | (3,510,287) | (1,840,129) | 61,238 | - | (3,449,049) | (1,840,129) |
(iii) Summarized statement of financial position as at 31 December 2024
LKR"000" | Private Label Manufacturing | |||||
Division | Brand Licensing Division | Group | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
ASSETS | ||||||
Non-current assets | 23,451,749 | 26,263,661 | 2,887,080 | - | 26,338,829 | 26,263,661 |
Current assets | 23,940,243 | 25,394,457 | 13,641,416 | - | 37,581,659 | 25,394,457 |
Total assets | 47,391,991 | 51,658,118 | 16,528,497 | - | 63,920,488 | 51,658,118 |
LIABILITIES | ||||||
Non-current liabilities | 7,124,646 | 8,516,207 | 1,535,918 | - | 8,660,564 | 8,516,207 |
Current liabilities | 44,742,175 | 38,280,370 | 7,045,433 | - | 50,373,337 | 38,280,370 |
Total liabilities | 51,866,821 | 46,796,577 | 8,581,351 | - | 59,033,901 | 46,796,577 |
- General information
Hela Apparel Holdings PLC is engaged in providing consultancy and support services to group companies. The Group is engaged in the manufacture of apparel for export markets and in providing front-end services to foreign customers. The Company is a public limited liability company incorporated on 11 October 2018 and listed on the Colombo Stock Exchange on 7 February 2022. It is domiciled in Sri Lanka and bears the registration number PQ00205151 under the Companies Act No.07 of 2007. The address of the registered office and the principal place of the business is, No 35 Balapokuna Road, Colombo 06, Sri Lanka.
- Interim Condensed Financial Statements
The Consolidated Financial Statements for the period ended 31 December 2024, comprise "the company" referring to Hela Apparel Holdings PLC as the Holding Company and "the Group"referring to the Companies whose accounts have been consolidated therein.
- Approval of Financial Statements
The Interim Condensed Financial Statements of the Group and the Company for the period ended 31 December 2024 were authorized for issue by the Board of Directors on 11 February 2025.
- Basis of preparation
The condensed interim financial statements for the period ended 31 December 2024 of the Company and the Group have been prepared in accordance with Sri Lanka Accounting Standard LKAS 34, 'Interim Financial Reporting'. The condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 March 2024.
9
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