The fourth quarter of FY 2024/25 was a defining period for Hela Apparel Holdings PLC ("Hela" or "Group"), marked by strategic action amidst operational and financial headwinds. As we navigated a challenging macroeconomic and industry environment, we embarked on a broad-based restructuring of our global operating model aimed at enhancing long-term competitiveness and value creation across our supply chain. While our reported financial results reflect the short-term impact of this transition, they also underscore the Group's commitment to building a more resilient and future-ready business.
Group revenue for the quarter increased modestly to Rs. 21.8 Bn, up 0.49t compared to the same period of the previous year. This reflected a significant Increase in the revenue of the Brand Licensing Division (BLD) compared to the period immediately following the acquisition of Focus Brands (now renamed Hela Brands) In j nuary 2024. Revenue for the Private Label Manufacturing Division (PLMD) declined by 18.396 year-on-year during the quarter. This partly reflected the appreciation of the Sri Lankan rupee against the division*s U5 dollar-denominated sales during this period and, in US Dollar term, PLMD revenue decreased by 12.2°4 in the fourth quarter compared to the same period of the previous year.
The Group's prof1tabllit:y declined materially during the fourth quarter as result of the restructuring efforts initiated in the PLMD and associated one-off impacts. As part of this process, the PLMD recorded impairment charges of approximately Rs. 3.6 Bn including goodwill. This reflects a prudent step to align asset values with the evolving structure of our business, the temporary challenges of realignment and investment in future capability. In contrast, the BLD continues to demonstrate resilience, delivering a positive operating profit of Rs.
207 Mn. This performance reinforces the strength of our strategy to integrate higher-margin, brand-led business models into the Group.
In the context of the operational challenges facing the PLMD and the backdrop of increased global economic uncertainty, we commenced a significant restructuring of this division during the fourth quarter, This forms part of a broader turnaround strategy focused on structural simplification and performance improvement, with the objective of positioning the operations for recovery in the comlng financial year. The initiative is designed to establish a globally diversified, partner-enabled apparel operating model. While this exercise in ongoing, the following steps were executed during the quarter:
In Ethiopia, we ceased our manufacturing operations as of December 2024 due to the challenging global and local operating environment. As a result, the remaining costs attributed to the Croup's operations in Ethiopia and impairment charges on our local assets were recorded as exceptional items during the fourth quarter.
The remainder of the Group's operating footprint has been reevaluated as we seek to build a more agile capacity base by reducing directly operating capacity and increasing the use of partnered capacity. As a result, certain assets have been Identified for divestment and been classified as such for the purpose of these financial statements. This included the disposal of a warehouse and two of our six production facilities in Sri Lanka, enabling us to retain critical value chain capabilities.
In Kenya, our subsidiary, Hela Intimates EPZ, has been recalibrated through local operational agreements to support order fulfilment more flexibly, ensuring both quality outcomes and disciplined cost structures.
As part of the broader restructuring initiative, the Group also undertook a right-sizing exercise to optimise functional structures, eliminate inefficiencies arising from overlapping responsibilities, and recalibrate headcount in line with current operational requirements. As a result of this and the above changes, the PLMD's employee base has also been reduced to align its cost base with the revised structuring of the division. This resulted in a one-time exceptional employee compensation cost during the fourth quarter of Rs. 681,7 Mn.
The successful execution of these transltions Is expected to be supported by a balance sheet structuring initiative already underway, aimed at enhancing the Group's capital efficiency, strengthening liquidity and cash flow, and positioning the business for long-term sustainability.
The steps taken over the past quarter while difficult are essential to ensure that Hela continues to evolve and build a sustainable business model. Although the benefits of these structural changes are not yet fully reflected in our financlal results. we are confident that the foundation being laid through operational realignment and financial optimisation will position the Group for a return to profitability, We will continue to provide updates as material developments occur. On behalf of the leadership team, I extend my sincere thanks to our partners, shareholders. and employees for their continued support and commitment during thls transformational period.
Group CEO
Visit our website at https://www.helacIothino.com 1
HELA APPAREL HOLDINGS PLC AND ITS SUBSIDIARIES
Condensed Statement of Profit or Loss
(All amounts are in Sri Lankan Rupees Thousands)
Group | Company | |||||
Quarter ended 31 March | Quarter ended 31 March | |||||
2025 2024 | 2025 2024 | |||||
Note | (Unaudited) (Unaudited) | (Unaudited) (Unaudited) | ||||
Revenue from contracts with customers | 21,800,573 | 21,719,424 | - | - | ||
Cost of sales | (20,284,500) | (19,201,128) | - | - | ||
Gross profit | 1,516,073 | 2,518,296 | - | - | ||
Distribution costs | (1,856,455) | (1,356,644) | - | - | ||
Administrative costs | (2,422,613) | (4,471,341) | (25,187) | (10,358) | ||
Other income | (23,139) | 150,526 | - | - | ||
Net impairment loss on financial assets / goodwill | (3,632,729) | (20,652) | - | - | ||
Other gains / (losses) - net | (92,580) | 9,132,962 | 33,247 | (961) | ||
Operating (loss)/ profit | (6,511,443) | 5,953,147 | 8,060 | (11,319) | ||
Finance income | 31,769 | 78,313 | 13 | 18 | ||
Finance costs | (982,115) | (1,151,776) | - | (24) | ||
Finance (costs) / income - net | (950,346) | (1,073,463) | 13 | (6) | ||
Exceptional items: | ||||||
Impairment losses from discontinued operations | 7 | (577,555) | - | - | - | |
Expense from employee compensation scheme | 8 | (681,670) | - | - | - | |
Share of loss of equity accounted investee, | - | 11,279 | - | - | ||
net of tax | ||||||
(Loss) / profit before income tax | (8,721,014) | 4,890,963 | 8,073 | (11,325) | ||
Income tax reversal / (expense) | 59,206 | 1,086,974 | (17) | 52 | ||
Loss / (profit) for the period from continuing operations | (8,661,808) | 5,977,937 | 8,056 | (11,273) | ||
Discontinued operations | ||||||
Loss after tax for the year from discontinued operations and assets held for sale | 9 | (555,892) | - | - | - | |
(Loss) / profit for the year | (9,217,700) | 5,977,937 | 8,056 | (11,273) | ||
Profit / (loss) attributable to: (Continuing operations) | ||||||
Owners of the Company | (8,771,337) | 6,046,628 | 8,056 | (11,273) | ||
Non-controlling interests | 109,529 | (68,691) | - | - | ||
Loss is attributable to: (Discontinuing operations)
Owners of the Company | (290,410) | - | - | - |
Non-controlling interests | (265,482) | - | - | - |
(Loss) / profit for the period | (9,217,700) | 5,977,937 | 8,056 | (11,273) |
(Loss) / profit per share for loss | ||||
attributable to the equity holders of the Company | LKR | LKR | LKR | LKR |
Basic / diluted loss per share | (5.54) | 4.59 | 0.00 | (0.01) |
Condensed Statement of Comprehensive Income (All amounts are in Sri Lankan Rupees Thousands)
Group CompanyQuarter ended 31 March Quarter ended 31 March
2025 (Unaudited) | 2024 (Unaudited) | 2025 (Unaudited) | 2024 (Unaudited) |
(Loss) / profit for the period (9,217,700) | 5,977,937 | 8,056 | (11,273) |
Other comprehensive income: | |||
Items that will be reclassified to profit or loss Currency translation differences 521,749 | (789,524) | 97,246 | (473,611) |
Other comprehensive income / (loss) for the period, net of tax 521,749 | (789,524) | 97,246 | (473,611) |
Total comprehensive (loss) / profit for (8,695,951) | 5,188,413 | 105,302 | (484,884) |
Condensed Statement of Profit or Loss
(All amounts are in Sri Lankan Rupees Thousands)
Group Company Year ended 31 March Year ended 31 MarchNote | 2025 (Unaudited) | 2024 (Audited) | 2025 (Unaudited) | 2024 (Audited) | |
Revenue from contracts with customers | 83,362,707 | 70,288,945 | - | - | |
Cost of sales | (73,626,983) | (64,119,066) | - | - | |
Gross profit | 9,735,724 | 6,169,879 | - | - | |
Distribution costs | (4,499,521) | (2,915,833) | (488) | - | |
Administrative costs | (11,859,060) | (11,435,018) | (86,877) | (17,716) | |
Other income | 529,361 | 363,647 | - | - | |
Net impairment loss on financial assets / goodwill | (3,668,970) | (20,652) | - | - | |
Other gains / (losses) - net | (379,744) | 9,555,956 | 33,100 | (966) | |
Operating (loss) / profit | (10,142,210) | 1,717,979 | (54,265) | (18,682) | |
Finance income | 185,942 | 112,076 | 57 | 83 | |
Finance costs | (4,265,610) | (4,118,845) | (152) | (24) | |
Finance (costs) / income - net | (4,079,668) | (4,006,769) | (95) | 59 | |
Exceptional items: | |||||
Impairment losses from discontinued operations | 7 | (583,316) | - | - | - |
Expense from employee compensation scheme | 8 | (688,471) | - | - | - |
Share of loss of equity accounted investee, net of tax | - | (42,734) | - | - | |
Loss before income tax | (15,493,665) | (2,331,524) | (54,360) | (18,623) | |
Income tax reversal / (expense) | 367,188 | 1,982,628 | (17) | 53 | |
Loss for the period from continuing operations | (15,126,477) | (348,896) | (54,377) | (18,570) | |
Discontinued operations | |||||
Loss after tax for the year from discontinued operations and assets held for sale | 9 | (626,011) | - | - | - |
Loss for the year | (15,752,488) | (348,896) | (54,377) | (18,570) | |
Profit / (loss) attributable to: (Continuing operations) | |||||
Owners of the Company | (15,127,669) | (373,276) | (54,377) | (18,570) | |
Non-controlling interests | 1,192 | 24,380 | - | - | |
Loss is attributable to: (Discontinuing operations) | |||||
Owners of the Company | (358,179) | - | - | - | |
Non-controlling interests | (267,832) | - | - | - | |
Loss for the period | (15,752,488) | (348,896) | (54,377) | (18,570) | |
Loss per share for loss attributable to the equity | |||||
holders of the Company | LKR | LKR | LKR | LKR | |
Basic / diluted earnings / (loss) per share | (9.46) | (0.28) | (0.03) | (0.01) | |
Condensed Statement of Comprehensive Income (All amounts are in Sri Lankan Rupees Thousands)
Group Company
Year ended 31 March Year ended 31 March
2025 (Unaudited) | 2024 (Audited) | 2025 (Unaudited) | 2024 (Audited) | |
Loss for the period | (15,752,488) | (348,896) | (54,377) | (18,570) |
Other comprehensive income: | ||||
Items that will be reclassified to profit or loss | ||||
Currency translation differences | 1,291 | (995,869) | (128,831) | (543,801) |
Items that will not be reclassified to profit or loss Revaluation gain arising from the transfer of property, plant | - | 360,608 | - | - |
and equipment to investment property Deferred income tax impact relating to revaluation | - | - | - | - |
Re-measurements of post-employment benefit obligations | - | (144,696) | - | - |
Deferred income tax impact relating to re-measurements of post employment benefit obligation | - | 35,803 | - | - |
Other comprehensive income / (loss) for the period, net of tax | 1,291 | (744,154) | (128,831) | (543,801) |
Total comprehensive loss for the period | (15,751,197) | (1,093,050) | (183,208) | (562,371) |
Condensed Statement of Financial Position
(All amounts are in Sri Lankan Rupees Thousands)
Group CompanyNote | 31.03.2025 (Unaudited) | 31.03.2024 (Audited) | 31.03.2025 (Unaudited) | 31.03.2024 (Audited) | |
ASSETS | |||||
Non-current assets | |||||
Property, plant and equipment | 4,347,647 | 6,768,862 | - | - | |
Investment property | 598,000 | 1,256,500 | - | - | |
Right-of-use assets | 3,094,505 | 3,986,043 | - | - | |
Intangible assets | 9,662,646 | 13,161,576 | 22,226 | 26,354 | |
Investment in subsidiaries | - | - | 7,837,275 | 6,341,683 | |
Investments accounted for using the equity | |||||
method | - | 226,134 | - | - | |
Deferred tax assets | 3,387,810 | 3,074,839 | - | - | |
Other financial assets at amortized cost | 178 | 602,548 | - | - | |
Total non-current assets | 21,090,786 | 29,076,502 | 7,859,501 | 6,368,037 | |
Current assets | |||||
Inventories | 7,115,698 | 8,478,114 | - | - | |
Trade and other receivables | 13,989,391 | 15,266,312 | 147 | 22,073 | |
Other assets | 3,689,461 | 3,067,359 | 11,575 | 2,834 | |
Income tax receivables | 303,168 | 284,437 | 55 | 73 | |
Assets directly associate with assets held for | 10 | ||||
sale and discontinued operations | 2,202,673 | - | - | - | |
Other financial assets at amortized cost | 249,670 | 257,507 | - | - | |
Cash and cash equivalents | 4,442,124 | 8,314,419 | 3,533 | 5,058 | |
Total current assets | 31,992,185 | 35,668,148 | 15,310 | 30,038 | |
Total assets | 53,082,971 | 64,744,650 | 7,874,811 | 6,398,075 | |
EQUITY | |||||
Stated capital | 7,377,504 | 5,780,678 | 7,377,504 | 5,780,678 | |
Accumulated losses | (17,196,292) | (1,710,444) | (2,373,786) | (2,319,409) | |
Other reserves | 1,233,869 | 1,233,869 | 93,841 | 93,841 | |
Exchange equalization reserve | 4,915,354 | 4,914,063 | 2,587,139 | 2,715,970 | |
Capital and reserves attributable to | |||||
owners of the Company | (3,669,565) | 10,218,166 | 7,684,698 | 6,271,080 | |
Non-controlling interests | (210,544) | 56,096 | - | - | |
Total equity | (3,880,109) | 10,274,262 | 7,684,698 | 6,271,080 | |
LIABILITIES | |||||
Non-current liabilities | |||||
Borrowings | 2,992,346 | 4,322,054 | - | - | |
Deferred tax liabilities | 1,124,194 | 1,476,608 | - | - | |
Lease liabilities | 2,295,246 | 3,134,053 | - | - | |
Employee benefit obligations | 778,885 | 735,923 | - | - | |
Total non-current liabilities | 7,190,671 | 9,668,638 | - | - | |
Current liabilities | |||||
Trade and other payables | 20,044,039 | 16,012,782 | 190,113 | 120,427 | |
Lease liabilities | 1,028,777 | 1,064,156 | - | - | |
Income tax liabilities | 26,768 | 156,929 | - | - | |
Liabilities directly associated with the held for | 10 | ||||
sale and discontinued operations | 279,629 | - | - | - | |
Borrowings | 28,393,196 | 27,567,883 | - | 6,568 | |
Total current liabilities | 49,772,409 | 44,801,750 | 190,113 | 126,995 | |
Total liabilities | 56,963,080 | 54,470,388 | 190,113 | 126,995 | |
Total equity and liabilities | 53,082,971 | 64,744,650 | 7,874,811 | 6,398,075 | |
LKR | LKR | LKR | LKR | ||
Net assets per share | (2.24) | 7.76 | 4.70 | 4.76 | |
I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act, No. 07 of 2007.
Sgd.
Director Group Finance - Ms. Navodya Premaratne Date: 28th May 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: 28th May 2025 Date: 28th May 2025
Condensed Statement of Cash Flows
(All amounts are in Sri Lankan Rupees Thousands)
Group Company
Year ended 31 March Year ended 31 March2025 | 2024 | 2025 | 2024 | |
Loss before income tax expense from continuing operations | (15,493,665) | (2,331,524) | (54,360) | (18,623) |
Loss before tax from discontinued operations | (626,011) | - | - | - |
Loss before income tax | (16,119,676) | (2,331,524) | (54,360) | (18,623) |
Adjustments for: Depreciation and amortization | 2,275,463 | 1,991,670 | 3,727 | - |
Net interest expenses | 4,079,668 | 4,006,769 | (95) | (59) |
Retirement benefits obligations provision | 202,708 | 182,339 | - | 3,998 |
Realised exchange gain/ losss | - | 19,517 | - | - |
Gain on bargain purchase | - | (9,580,225) | - | - |
Fair value adjustment to investment property | (24,500) | (35,277) | - | - |
Loss on sale of property, plant and equipment | 166,889 | (4) | - | - |
Provision for impairment of debtors | 1,160,092 | 210,284 | - | - |
Impairment of goodwill | 2,973,879 | |||
Expense charged under ESOP | - | 4,932 | - | - |
Impairment of joint venture investment | 110,429 | - | - | - |
Share of loss from joint Ventures | 119,003 | 42,734 | - | - |
Changes in working capital - (Increase) / decrease in inventories | 1,233,797 | 8,242,894 | - | - |
- (Increase) / decrease in trade and other receivables | (349,278) | (1,577,925) | 12,863 | (10,206) |
- Increase / (decrease) in trade and other payables | 4,287,469 | (456,902) | 65,557 | 72,492 |
Cash (used in) / generated from operations | 115,943 | 719,282 | 27,692 | 47,602 |
Retirement benefits obligations paid | (147,593) | (127,621) | - | - |
Income tax paid | (165,151) | (208,429) | - (610) | |
Interest paid | (4,089,078) | (4,014,976) | - | - |
Net cash (outflow) / inflow from operating activities | (4,285,879) | (3,631,744) | 27,692 | 46,992 |
Cash flows from investing activities Investments made in subsidiaries | - | - | (1,607,231) | - |
Net movement of property, plant and equipment and intangible assets | (175,571) | (814,884) | - | (31,981) |
Payment for acquisition of subsidiaries, net of cash acquired | - | 3,989,804 | - | (31,949) |
Interest received / (paid) | 185,942 | 112,076 | 95 | 59 |
Net cash (outflow) / inflow from investing activities | 10,371 | 3,286,996 | (1,607,136) | (63,871) |
Cash flows from financing activities | ||||
Principal elements of lease payments | (1,308,368) | (989,351) | - | - |
Net borrowings | 7,752 | 6,998,830 | - | 6,568 |
Advance receipt on share issue | 1,596,826 | - | 1,596,826 | - |
Net cash inflow / (outflow) from financing activities | 296,210 | 6,009,479 | 1,596,826 | 6,568 |
Net increase / (decrease) in cash and cash equivalents | (3,979,298) | 5,664,731 | 17,382 | (10,311) |
Cash and cash equivalents at beginning of the period | 8,314,419 | 3,901,127 | 5,058 | 8,803 |
Currency translation differences | 107,003 | (1,251,439) | (18,907) | 6,566 |
Cash and cash equivalents at end of the Period | 4,442,124 | 8,314,419 | 3,533 | 5,058 |
Group
Attributable to owners of the CompanyStated capital | Retained earnings | Other reserves | Exchange equalization reserve | Total | Non-controlling interests | Total equity | |
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- Continued Operations | - | (15,127,669) | - | - | (15,127,669) | 1,192 | (15,126,477) |
Loss for the Period-Discontinued Operations | (358,179) | (358,179) | (267,832) | (626,011) | |||
Remeasurement of post employment benefit obligation | - | - | - | - | - | - | - |
Deferred income tax on employee benefit obligation | - | - | - | - | - | - | - |
Total comprehensive income for the year | - | (15,485,848) | - | - | (15,485,848) | (266,640) | (15,752,488) |
Currency translation difference | - | - | - | 1,291 | 1,291 | - | 1,291 |
Issue of rights | 1,596,826 | - | - | - | 1,596,826 | - | 1,596,826 |
Balance at 31 March 2025 | 7,377,504 | (17,196,292) | 1,233,869 | 4,915,354 | (3,669,565) | (210,544) | (3,880,109) |
Company | |||||
Stated capital | Other reserves | Retained earnings /(accumulated losses) | Exchange Total equalization reserve | ||
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 | - | - | (54,377) | - | (54,377) |
Other comprehensive income | - | - | - | (128,831) | (128,831) |
Total comprehensive income for the year | - | - | (54,377) | (128,831) | (183,208) |
Issue of rights | 1,596,826 | - | - | - | 1,596,826 |
Balance at 31 March 2025 | 7,377,504 | 93,841 | (2,373,786) | 2,587,139 | 7,684,698 |
(All amounts are shown in Sri Lankan Rupees Thousands unless otherwise stated)
-
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 March 2025
LKR"000"
Private Label Manufacturing Division Brand Licensing Division Group2025
2024
2025
2024
2025
2024
Revenue
13,086,386
16,016,789
8,714,187
5,702,635
21,800,573
21,719,424
Operating profit/ (loss)
(6,718,373)
6,226,753
206,930
(273,606)
(6,511,443)
5,953,147
Net finance (cost)/income
(950,823)
(1,043,448)
477
(30,015)
(950,346)
(1,073,463)
Profit/ (loss) before taxation
(8,928,421)
5,194,584
207,407
(303,621)
(8,721,014)
4,890,963
Income tax reversal
85,874
1,099,502
(26,668)
(12,528)
59,206
1,086,974
Profit/ (loss) for the period
(8,842,547)
6,294,086
180,739
(316,149)
(8,661,808)
5,977,937
-
Summarized statement of financial position as at 31 March 2025
LKR"000"
Private Label Manufacturing Division Brand Licensing Division Group2025
2024
2025
2024
2025
2024
ASSETS
Non-current assets
17,860,481
26,389,492
3,230,305
2,687,010
21,090,786
29,076,502
Current assets
20,504,600
20,923,747
11,487,585
14,744,401
31,992,185
35,668,148
Total assets
38,365,081
47,313,239
14,717,890
17,431,411
53,082,971
64,744,650
LIABILITIES
Non-current liabilities
5,514,408
9,668,638
1,676,263
1,796,806
7,190,671
9,668,638
Current liabilities
45,330,099
44,801,750
4,442,310
7,680,920
49,772,409
44,801,750
Total liabilities
50,844,507
54,470,388
6,118,573
9,477,726
56,963,080
54,470,388
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Description of segments and principal activities
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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.
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Interim Condensed Financial Statements
The Consolidated Financial Statements for the year ended 31 March 2025, 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.
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Approval of Financial Statements
The Interim Condensed Financial Statements of the Group and the Company for the period ended 31 March 2025 were authorized for issue by the Board of Directors on 28 May 2025.
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Basis of preparation
The condensed interim financial statements for the year ended 31 March 2025 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.
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Contingent liabilities
Determination of the treatment of contingent liabilities in the financial statements is based on the management's view of the expected outcome of the applicable contingency. The Company consults with legal counsel (lawyers) on matters related to litigation and other experts both within and outside the Company with respect to the matters in the ordinary course of business.
The following are the corporate guarantees provided by the Company and its subsidiaries as of 31 March 2025.
Liability Due by
Guarantee or contingent liability taken on behalf of
Financial Institution
Nature of the liability
Amount (LKR Mn)
Foundation Garments
Hela Investment Holdings
NDB
Corporate Guarantee - USD
296.35
BOC
Corporate Guarantee - USD
1,185.39
Corporate Guarantee - USD
1,778.08
Hela Clothing Egypt
NDB
Corporate Guarantee - USD
296.35
Hela Clothing
HNB
Corporate Guarantee - USD
135.13
DFCC
Corporate Guarantee - USD
1,185.39
NTB
Corporate Guarantee - USD
2,222.60
Foundation Garments and Hela Intimates EPZ
Hela Investment Holdings
Aavishkaar
Corporate Guarantee - USD
1,481.74
Norfund
Corporate Guarantee - USD
4,148.86
Hela Apparel Holdings
Foundation Garments
NDB
Corporate Guarantee - USD
2,911.31
DFCC
Corporate Guarantee - USD
889.04
Hela Clothing
DFCC
Corporate Guarantee - LKR
1,200.00
NDB
Corporate Guarantee - LKR
1,260.00
Commercial Bank
Corporate Guarantee - USD
296.35
HNB
Corporate Guarantee - USD
918.68
Sampath Bank
Corporate Guarantee - USD
592.69
NTB
Corporate Guarantee - LKR
2,500.00
Hela Clothing
Foundation Garments
Sampath Bank
Corporate Guarantee - USD
1,185.39
Commercial Bank
Corporate Guarantee - USD
889.04
DFCC
Corporate Guarantee - USD
889.04
Corporate Guarantee - USD
889.04
Corporate Guarantee - USD
2,074.43
Corporate Guarantee - USD
889.04
BOC
Corporate Guarantee - USD
3,111.65
Corporate Guarantee - USD
68.16
Corporate Guarantee - LKR
25.00
Hela Investment Holdings
BOC
Corporate Guarantee - USD
889.04
Corporate Guarantee - USD
889.04
Corporate Guarantee - USD
296.35
Hela Clothing and Hela Apparel Holdings
Foundation Garments
Peoples Bank
Corporate Guarantee - USD
1,926.26
Corporate Guarantee - LKR
300.00
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Impairment losses from discontinued operations
The impairment expense recognized during the period relates to the Group's decision to discontinue its operations in Ethiopia. This includes the impairment provision of related party receivables and other receivables associated with the joint venture in Ethiopia, as well as the full impairment of the Group's investment in the joint venture. These impairments reflect the diminished recoverability of assets following the cessation of business activities in that region.
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Expense from employee compensation scheme
This expense includes employee compensation costs incurred in relation to the restructuring of the Group's operations. The expense arises from employee compensation schemes implemented across Foundation Garments (Private) Limited, Hela Clothing (Private) Limited, F D N Sourcing (Private) Limited, and Hela Kenya EPZ Limited.
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Loss after tax for the year from discontinued operations and assets held for sale
This loss reflects the net (loss)/profit attributable to Sumbiri Intimate Apparel Private Limited Company, Hela Indochine Apparel Private Limited Company, Foundation Bennett (Private) Limited, and Jinadasa Bennett (Private) Limited.
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Assets / Liabilities directly associate with assets held for sale and discontinued operations
This comprises assets and liabilities associated with Hela Indochine Apparel Private Limited Company, investment property held by Foundation Bennett (Private) Limited and Jinadasa Bennett (Private) Limited, and fixed assets of Foundation Garments (Private) Limited, which are proposed to be sold during the 2025/26 financial year
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Comparatives
Comparative figures, where necessary, have been adjusted to conform with the changes in presentation in the current period.
-
Stated capital
Company
31 March 2025
31 March 2024
31 March 2025
31 March 2024
Value
Value
Number of shares
Number of shares
(LKR' 000)
(LKR' 000)
Ordinary Voting Shares
1,636,746,787
1,317,381,560
7,377,504
5,780,678
1,636,746,787
1,317,381,560
7,377,504
5,780,678
Stated capital (Contd.)
(i) Movement in ordinary shares:
Number of
shares
Value (LKR' 000)
Opening balance 1 April 2023
1,309,955,933
5,754,575
Share issue related to Employee Share Ownership Plan
7,425,627
26,103
Balance 31 March 2024
1,317,381,560
5,780,678
Opening balance 1 April 2024
1,317,381,560
5,780,678
Right issue of ordinary shares
319,365,227
1,596,826
Balance 31 March 2025
1,636,746,787
7,377,504
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Net Assets per share
Net assets as at a particular financial period ended divided by the number of shares in issue as at the current period end.
Group Company31 March 2025
31 March 2024
31 March 2024
31 March 2024
Net assets as of period end (LKR '000)
(3,669,565)
10,218,166
7,684,698
6,271,080
Number of shares as of period end
1,636,746,787
1,317,381,560
1,636,746,787
1,317,381,560
Net assets per share (Rs.)
(2.24)
7.76
4.70
4.76
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Events after reporting period
As part of the Group's restructuring process, a decision has been made to transfer 100% of the shareholding in Jinadasa Bennett (Private) Limited (JB) and Foundation Bennett (Private) Limited (FB) to a third party during the financial year 2025/26. Accordingly, all assets and liabilities of these entities have been classified as Assets Held for Sale as at 31 March 2025.
In addition, the Group has also decided to transfer the Mawathagama and Narammala plants, currently owned by Foundation Garment (Pvt) Ltd, to a third party in 2025/26. These assets have likewise been classified under Assets Held for Sale as at 31 March 2025.
Furthermore, management has decided to discontinue operations in Ethiopia effective from December 2024. Accordingly, the profit/(loss) attributable to Hela Indochine Apparel Private Limited has been classified under Discontinued Operations for the year ended 31 March 2025. Additionally, the investment in Sumbiri Intimate Apparel (Pvt) Limited has been impaired as at 31 March 2025, based on an assessment of recoverable value.
Except above, there have been no events subsequent to the reporting date, which require disclosure in the financial statements.
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Presentation currency
Transactions measured in US Dollars are translated to Sri Lankan Rupees based on the Sri Lanka Accounting Standard 21, "The Effects of Changes in Foreign Exchange Rates", as follows:
Assets and Liabilities presented including comparatives are translated at the closing rate existed at the date of each balance sheet presented.
Income and expense items for all periods presented (i.e. including comparatives) are translated at the period average exchange rate applicable for respective periods.
Share capital is translated at the exchange rate existing at the date of transaction.
All resulting exchange differences are recognized in equity under exchange equalization reserves.
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Fair values of other financial instruments
The Group also has a number of financial instruments which are not measured at fair value in the balance sheet. The Group has trade receivables, trade payables and borrowings as financial instruments. The fair values are not materially different to their carrying amounts, since the interest receivable/payable is either close to the current market rates or the instruments are short-term in nature.
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Market Price Per Share
Market Value of Shares
2025 2024
Last trading price on 31 March (LKR) 3.70 6.10
Highest Price During the Quarter Ended 31 March (LKR) 6.40 6.30
Lowest Price During the Quarter Ended 31 March (LKR) 3.60 4.80
Market Capitalization on 31 March (LKR) 6,055,963,112 8,036,027,516
Ratios
Net Asset Per Share of the Group on 31 March (LKR) (2.24) 7.76
No of Transactions During the Quarter Ended 31 March 2025
15,278
22,198
No of Shares Traded During the Quarter Ended 31 March 2025
149,915,946
190,346,808
Value of Shares Traded During the Quarter Ended 31 March 2025 (LKR)
759,668,357
1,130,277,014
Share Trading
Number of Shares 1,636,746,787 1,317,381,560
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Public Holdings as at 31 March 2025
Public Holding as at 31 March
2025
2024
Issued Share Capital (No. of Shares)
1,636,746,787
1,317,381,560
Public Holding as a % of Issued Share Capital
23.18%
21.28%
Total Number of Shareholders
13,844
13,874
Number of Shareholders representing the Public Holding
13,834
13,855
Minimum Public Holding Requirement as per Listing
Rules 7.13.1 (i) (a)
Float Adjusted Market
Capitalization - (LKR)
Public Holding
Percentage
No of
Shareholders
1,403,772,249
23.18%
13,834
Minimum Public Holding as at 31 March 2025
The Company complies with the Minimum Public Holding required of the Main Board as per Option 5 of Section 7.13.1 (i) (a) of the CSE Listing Rules
- Shareholder Information
No. of Shares | % | ||
1 | Lesing Hela Limited | 792,756,301 | 48.43 |
2 | Tars Investments Lanka (Pvt) Ltd. | 261,927,898 | 16.00 |
3 | Mr. P.L.D. Jinadasa | 191,728,960 | 11.71 |
4 | Citibank Newyork S/A Norges Bank Account 2 | 34,932,879 | 2.13 |
5 | Mr D.E.H Mcvey | 30,598,973 | 1.87 |
6 | Hatton National Bank PLC/Sri Dhaman Rajendram Arudpragasam | 14,600,000 | 0.89 |
7 | Mr T.C.U Jayanetti | 8,000,000 | 0.49 |
8 | Hatton National Bank PLC/ Dinesh Nagendra Sellamuttu | 7,854,644 | 0.48 |
9 | Mr. R.S.P. Amaratunga | 5,407,961 | 0.33 |
10 | Mrs D.C.R Boteju | 5,310,000 | 0.32 |
11 | Mr. A.R. Rasiah | 5,309,801 | 0.32 |
12 | Mr M.A. De Silva | 4,704,239 | 0.29 |
13 | Mr. P.S.V. Fernando | 4,403,743 | 0.27 |
14 | Mr. D.M. Beruwalage | 4,300,927 | 0.26 |
15 | Mr A.M Weerasinghe | 3,758,308 | 0.23 |
16 | Hatton National Bank PLC/ Sonali Senaratna | 3,585,084 | 0.22 |
17 | Simonas Trust Service (Pvt) Limited | 3,349,796 | 0.20 |
9 | Mr R Gautam | 3,215,000 | 0.20 |
13 | Mr S.V. Somasunderam | 3,140,737 | 0.19 |
20 | Mr S.D Liyanage | 3,130,359 | 0.19 |
1,392,015,610 | 85.02 | ||
Directors' Shareholding as at 31 March 2025 2025 2024 | |||
No. of Shares | No. of Shares | ||
Directors' Direct Shareholding | |||
Mr. P.L.D. Jinadasa (Group CEO) | 191,728,960 | 138,931,300 | |
Mr. A.R. Rasiah (Chairman) | 5,309,801 | 4,273,743 | |
Ms. T.S. Peries (Resigned w.e.f. 31/3/2025) | 71,315 | 57,400 | |
197,110,076 | 143,262,443 | ||
2025
Group Company
Quarter ended | 31 March | Quarter ended | 31 March | |
2025 (Unaudited) | 2024 (Unaudited) | 2025 (Unaudited) | 2024 (Unaudited) | |
Revenue from contracts with customers | 73,845 | 68,481 | - | - |
Cost of sales | (68,710) | (60,540) | - | - |
Gross profit | 5,135 | 7,941 | - | - |
Distribution costs | (6,288) | (4,277) | - | - |
Administrative costs | (8,206) | (14,098) | (85) | (33) |
Other income | (78) | 474 | - | - |
Net impairment loss on financial assets / goodwill | (12,305) | (65) | - | - |
Other gains / (losses) - net | (314) | 28,796 | 113 | (3) |
Operating loss | (22,056) | 18,771 | 28 | (36) |
Finance income | 108 | 247 | - | - |
Finance costs | (3,327) | (3,632) | - | - |
Finance (costs) / income - net | (3,219) | (3,385) | - | - |
Exceptional items: | ||||
Impairment losses from discontinued operations | (1,956) | - | - | - |
Expense from employee compensation scheme | (2,309) | - | - | - |
Share of loss of equity accounted investee, net of tax | - | 36 | - | - |
Loss before income tax | (29,540) | 15,422 | 28 | (36) |
Income tax reversal | 201 | 3,427 | - | - |
Loss for the period from continuing operations | (29,339) | 18,849 | 28 | (36) |
Discontinued operations | ||||
Loss after tax for the year from discontinued operations and assets held for sale | (1,883) | - | - | - |
(Loss) / profit for the year | (31,222) | 18,849 | 28 | (36) |
Profit/ (Loss) is attributable to: (Continuing operations) | ||||
Owners of the Company | (29,710) | 19,066 | 28 | (36) |
Non-controlling interests | 371 | (217) | - | - |
Loss is attributable to: (Discontinuing operations) | ||||
Owners of the Company | (984) | - | - | - |
Non-controlling interests | (899) | - | - | - |
Loss for the period | (31,222) | 18,849 | 28 | (36) |
Quarter ended | 31 March | Quarter ended | 31 March | |
2025 | 2024 | 2025 | 2024 | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
Loss for the period | (31,222) | 18,849 | 28 | (36) |
Other comprehensive income: | ||||
Items that will be reclassified to profit or loss | ||||
Exchange differences on translation of foreign operations | 1,432 | (234) | - | - |
Items that will not be reclassified to profit or loss | ||||
Revaluation gain arising from the transfer of property, plant | - | - | - | - |
and equipment to investment property | 1,128 | |||
Remeasurements of post-employment benefit obligations | - | (452) | - | - |
Deferred income tax impact relating to remeasurements of post-employment benefit obligations - gratuity | - | 112 | - | - |
Other comprehensive loss for the period, net of tax | 1,432 | 554 | - | - |
Total comprehensive loss for the period | (29,790) | 19,403 | 28 | (36) |
2025 (Unaudited) | 2024 (Audited) | 2025 (Unaudited) | 2024 (Audited) | |
Revenue from contracts with customers | 279,585 | 219,787 | - | - |
Cost of sales | (246,933) | (200,493) | - | - |
Gross profit | 32,652 | 19,294 | - | - |
Distribution costs | (15,091) | (9,118) | (2) | - |
Administrative costs | (39,773) | (35,758) | (291) | (55) |
Other income | 1,775 | 1,137 | - | - |
Net impairment loss on financial assets / goodwill | (12,305) | (65) | ||
Other gains / (losses) - net | (1,274) | 29,881 | 111 | (3) |
Operating loss | (34,016) | 5,371 | (182) | (58) |
Finance income | 624 | 350 | - | - |
Finance costs | (14,306) | (12,877) | (1) | - |
Finance (costs) / income - net | (13,682) | (12,527) | (1) | - |
Exceptional items: | ||||
Impairment losses from discontinued operations | (1,956) | - | - | - |
Expense from employee compensation scheme | (2,309) | - | - | - |
Share of loss of equity accounted investee, net of tax | - | (134) | - | - |
Loss before income tax | (51,963) | (7,290) | (183) | (58) |
Income tax reversal | 1,231 | 6,199 | - | - |
Loss for the period from continuing operations | (50,732) | (1,091) | (183) | (58) |
Discontinued operations | ||||
Loss after tax for the year from discontinued operations and assets held for sale | (2,100) | - | - | - |
(Loss) / profit for the year | (52,832) | (1,091) | (183) | (58) |
Owners of the Company | (50,736) | (1,167) | (183) | (58) |
Non-controlling interests | 4 | 76 | - | - |
Owners of the Company | (1,202) | - | - | - |
Non-controlling interests | (898) | - | - | - |
Loss for the period | (52,832) | (1,091) | (183) | (58) |
2025 (Unaudited) | 2024 (Unaudited) | 2025 (Unaudited) | 2024 (Unaudited) |
Loss for the period (52,832) | (1,091) | (183) | (58) |
Other comprehensive income: | |||
Items that will be reclassified to profit or loss | |||
Exchange differences on translation of foreign operations 333 | (309) | - | - |
Items that will not be reclassified to profit or loss | |||
Revaluation gain arising from the transfer of property, pla - and equipment to investment property | 1,128 | - | - |
Remeasurements of post-employment benefit obligations - | (452) | - | - |
Deferred income tax impact relating to - remeasurements of post-employment benefit obligations - gratuity | 112 | - | - |
Other comprehensive loss for the period, net of 333 | 479 | - | - |
Total comprehensive loss for the period (52,499) | (612) | (183) | (58) |
31.03.2025 (Unaudited) | 31.03.2024 (Audited) | 31.03.2025 (Unaudited) | 31.03.2024 (Audited) | |
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 14,671 | 22,474 | - | - |
Investment property | 2,018 | 4,172 | - | - |
Right-of-use assets | 10,442 | 13,235 | - | - |
Intangible assets | 32,606 | 43,699 | 75 | 88 |
Investment in subsidiaries | - | - | 26,446 | 21,056 |
Investments accounted for using the equity method | - | 751 | - | - |
Deferred tax assets | 11,432 | 10,209 | - | - |
Other financial assets at amortized cost | 1 | 2,001 | - | - |
Total non-current assets | 71,170 | 96,541 | 26,521 | 21,144 |
Current assets | ||||
Inventories | 24,011 | 28,149 | - | - |
Trade and other receivables | 47,206 | 50,688 | - | 73 |
Other assets | 12,450 | 10,184 | 39 | 9 |
Income tax receivables | 1,023 | 944 | - | - |
Assets directly associate with assets held for sale and discontinued operations | 7,433 | - | - | - |
Other financial assets at amortized cost | 842 | 855 | - | - |
Cash and cash equivalents | 14,990 | 27,606 | 12 | 17 |
Total current assets | 107,955 | 118,426 | 51 | 99 |
Total assets | 179,125 | 214,967 | 26,572 | 21,243 |
EQUITY | ||||
Stated capital | 35,035 | 29,742 | 35,035 | 29,742 |
Retained earnings / (accumulated losses) | (52,075) | (138) | (9,635) | (9,453) |
Other reserves | 3,937 | 3,937 | 532 | 532 |
Exchange equalization reserve | 250 | (82) | - | - |
Capital and reserves attributable to owners of the | ||||
Company | (12,853) | 33,459 | 25,932 | 20,821 |
Non-controlling interests | (240) | 654 | - | - |
Total equity | (13,093) | 34,113 | 25,932 | 20,821 |
LIABILITIES | ||||
Non-current liabilities | ||||
Borrowings | 10,097 | 14,350 | - | - |
Deferred tax liabilities | 3,794 | 4,903 | - | - |
Lease liabilities | 7,745 | 10,406 | - | - |
Employee benefit obligations | 2,628 | 2,443 | - | - |
Total non-current liabilities | 24,264 | 32,102 | - | - |
Current liabilities | ||||
Trade and other payables | 67,637 | 53,166 | 640 | 400 |
Lease liabilities | 3,472 | 3,533 | - | - |
Income tax liabilities | 90 | 521 | - | - |
Liabilities directly associated with the held for sale and discontinued operations | 944 | |||
Borrowings | 95,811 | 91,532 | - | 22 |
Total current liabilities | 167,954 | 148,752 | 640 | 422 |
Total liabilities | 192,218 | 180,854 | 640 | 422 |
Total equity and liabilities | 179,125 | 214,967 | 26,572 | 21,243 |
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