Haycarb records turnover of Rs. 10.3 b; pre-tax profit of Rs. 1 b

Wednesday, 14 May 2014 00:00 - - {{hitsCtrl.values.hits}}

The Sri Lankan multinational Haycarb PLC reported a turnover of Rs. 10.3 billion and profit before tax of Rs. 1.0 billion for the financial year 2013/14. 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 Group contributes net foreign exchange revenues with its value adding processes whilst remaining a leading and technologically superior manufacturer in its chosen segment.

Haycarb reported a revenue of Rs. 10.3 billion for 2013-14 compared to Rs. 10.1 billion in the previous year. The company recorded profit before tax of Rs. 1,033 million and profit after tax of Rs. 892 million, compared to Rs. 1,228 million and Rs. 1,035 million respectively in the previous year. The earnings per share of equity holders of the company were Rs. 26.51 per share for the year. Haycarb PLC and Hayleys PLC Chairman Mohan Pandithage said that the results are noteworthy and displays the resilience of the company, considering the adverse market conditions and the escalation of raw material and other input costs with which the business contended during the year. Haycarb PLC Managing Director Rajitha Kariyawasan outlining the external environment stated: “The slowdown of the gold mining industry and mediocre economic recovery in our traditional developed markets necessitated price reductions to retain market share. The market conditions were exacerbated by the stiff competition created by the entry into these markets by manufacturers in countries such as India, Philippines and Indonesia who had built new and expanded capacities.” He further explained that on the supply side, raw material prices increased steeply in Sri Lanka and India in the second half of the year impacting on profitability of the Sri Lankan operation, as increases in cost of raw material and other inputs could not be passed on to customers due to external market conditions. Commenting on the results reported for the year he stated: “Even though significant competition in global markets and unrelenting increases in input costs resulted in a reduction of our Profit before tax by 16% compared to last year, I am pleased to report that top line volume growth, timely initiatives to expand to new markets, lean and cost saving projects primarily on energy management and commercialisation of new and existing value added products paved the way for the company to report a Profit before tax in excess of Rs. 1 billion for the second consecutive year.” Kariyawasan added that notable performances by the manufacturing entities in Thailand and Indonesia including the local market initiatives that expanded their local sales bases, contributed significantly to overall Group performance. The growth in both top and bottom line reported by Eurocarb, the marketing subsidiary operating in the European region, was encouraging. Similarly, the Group’s Environmental Engineering Company, Puritas Ltd. showed a significant growth in its net income and operational footprint. A significant milestone for the Haycarb Group during the year was the design, fabrication and installation of the second Activated Carbon Manufacturing Plant in the Palu Province of Central Sulawesi, Indonesia under the subsidiary PT Haycarb Palu Mitra Company. Also the additional ISO 9001 and NSF certifications obtained in Thailand and Indonesia were noteworthy milestones to enhance the systems and product portfolio offering from its overseas manufacturing operations. In moving forward amidst challenging market conditions Haycarb is embarking on initiatives to increase Haycarb brand awareness and is strengthening the marketing and support teams in Europe, USA, and Asia apart from its central resources and enhancing and setting up new distributorships in key growth markets. The company will continue development and commercialisation of value added products and also expand its product portfolio in carbon and associated service segments whilst enhancing broader product and process capabilities in its overseas manufacturing locations. Kariyawasan added that Puritas, the environmental engineering systems arm of the Group, will expand its footprint both locally and regionally whilst selectively participating in large scale drinking and waste water systems with strategic collaborations. The Board of Directors of Haycarb PLC comprises Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Arjun Senaratna, Ranjeevan Seevaratnam, Sarath Ganegoda, Dhammika Perera, Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana, Sujeewa Rajapakse and Shyamalie Weerasooriya (alternate to Dhammika Perera).