Haycarb records turnover of Rs. 3.3 b in 1Q; profit before tax of Rs. 151 m

Wednesday, 9 August 2017 00:00 - - {{hitsCtrl.values.hits}}

MD foresees challenging financial year due to shortage and price rise in coconut shell-based charcoal supplies

The Sri Lankan multinational Haycarb Plc reported revenue of Rs. 3.3 billion and profit before tax of Rs. 151 million for the first quarter of 2017/18. The profit after tax stood at Rs. 121 million.

Haycarb Plc Managing Director Rajitha Kariyawasan said that while the company’s initiatives to increase throughput and the value added portfolio together with the geographical expansion of export markets-contributed growth in turnover, the challenges faced in Indonesian operations due to the shortages in raw material supply and resultant high prices and the increases in charcoal prices in Sri Lanka, India and Thailand negatively impacted the group’s profitability.

“Shortages and price increases in coconut shell-based charcoal supplies are expected to continue through the current financial year in all the key coconut producing countries in Asia. The challenge in passing its full cost impact to the end customers is a major concern to maintain the activated carbon business’ expected margins through the year,” he said.

“The company is in the process of reviewing its prices to pass on a fair part of this impact to its customers after extensive discussions. Central and country specific management teams are working aggressively to ensure a secure supply chain in the current adverse situation whilst focusing on controlling costs and improving efficiencies through the Lean Manufacturing platform. Haycarb’s reputation to manage difficult supply chain issues effectively without interruption of deliveries to its valued customers is well demonstrated by example in the past,” added Kariyawasan.

On a separate note, he said that the growth in the environmental engineering arm Puritas Ltd. is expected to contribute positively to the profitability of the group.

In the background of increasing emphasis on environmental sustainability worldwide, Haycarb remains positive in its medium- to long-term outlook in its activated carbon and water treatment systems businesses.

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 US, 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 Chairman Mohan Pandithage, Managing Director Rajitha Kariyawasan, 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.