Haycarb records turnover of Rs. 10.9 b and profit before tax of Rs. 564 m at Q3 2017/18

Haycarb PLC, the Sri Lankan multinational of Hayleys PLC has reported revenue of Rs. 10.9 billion and profit before tax of Rs. 564 million for nine months ending 31 December 2017. The profit after tax stood at Rs. 473 million the Company said in a statement. 

Haycarb PLC Managing Director Rajitha Kariyawasan said that the raw material shortages and resulting high prices continued to impact the bottom line adversely in Q3 of 2017/18. The deterioration of charcoal availability in Sri Lanka, India and Thailand driven by unfavourable weather conditions, resulted in significant increases of cost of manufacture in Sri Lanka and Thailand. 

On the other hand, even though the raw material availability continued to recover in Indonesia during the period under review, the price pressure did not ease due to the high level of demand attributable to shortages of charcoal in other locations. In this situation the company has made significant efforts to revise prices of activated carbon in consecutive occasions through discussions with its valued customers. However, the lagging effect and the inability to pass the full impact of the price increase have resulted in lower margins compared to last year.

Kariyawasan stated that in this challenging environment, noteworthy savings were generated through increased efficiencies and cost reductions obtained via manufacturing processes and supply chain through lean projects.  

He further said, “The company’s initiatives to acquire new customer accounts and market segments backed by a robust product development platform have also shown positive results and added to the bottom line. Haycarb will continue to engage in its development initiatives to capture new markets, while using every effort to provide the best value proposition to its existing markets world-wide. Haycarb PLC made significant progress in its accreditations in quality by obtaining GMP, HACCP and ISO 22000 certifications from SGS that will enable the Group to position its high value added products in the food, cosmetic and pharmaceutical application segments.”

He also noted the positive contribution to the bottom line from the Environmental Engineering arm, Puritas Ltd. in Q3 and commented that this business segment is expected to continue its growth momentum and make a significant impact to the bottom line in the last quarter. 

Puritas Sathdiyawara, the key CSR initiative of the Hayleys/Haycarb Groups, that is instrumental in providing 160,000 litres of clean drinking water daily to 33,000 people in 19 villages in North Central and Northern districts affected by the Chronic Kidney Disease (CKD) of Sri Lanka, was named world’s best environmental water project at Energy Globe World Awards 2017.

Commenting on the future prospects and growth of the Group, Kariyawasan said that the company remains positive to achieve medium to long term growth in the background of increasing emphasis on environmental sustainability worldwide through the execution of its strategic plan for growth and diversification. 

Haycarb is the pioneer manufacturer of coconut shell activated carbon in any coconut producing country with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the USA, UK and Australia. The company contributes net foreign exchange revenues with its value adding processes whilst remaining a leading and technologically superior manufacturer in its chosen segment. 

The Board of Directors of Haycarb PLC comprises of Messrs Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Dhammika Perera, Arjun Senaratna, Sarath Ganegoda, Jeevani Abeyratne, Dr. Sarath Abayawardana, Sujeewa Rajapakse, M.S.P. Udaya Kumara, Brahman Balaratnarajah, Ali Asgar Caderbhoy, Sharmila Ragunathan, James Naylor and M.H. Jamaldeen.