Haycarb ups 1H turnover by 6% to Rs. 5.5b, posts Rs. 417 m pre-tax profit

Tuesday, 3 November 2015 00:49 - - {{hitsCtrl.values.hits}}

Sri Lankan multinational Haycarb PLC reported a revenue growth of 6% to Rs. 5.5billion and profit before tax of Rs. 417 million for six months ending 30September 2015. The profit after tax stood at Rs. 351 million.

Haycarb PLC Managing Director Rajitha Kariyawasan said: “Even though the raw material prices in Sri Lanka stabilized in the first half of the year, the current trend of increasing raw material pricesin India, Sri Lanka and Indonesia, difficulty in sourcing adequate quantities of raw material at competitive prices and the intense competition in global markets due to the depressed gold industry and competition from low cost manufacturers from Philippines , India and Indonesia remain key challenges.”

Haycarb has launched initiatives to strengthen raw material supply chain networks and build partnerships through providing technology and funding of environment friendly charcoalingtechnology in Sri Lanka and overseas.

He further noted that the lean initiatives implemented last year targeting increases in throughput and energy saving projects impacted the bottom line favourably in the 1H of 2015/16.The new product development and commercialisation resulted in the addition of several new products and accounts to the sales portfolio that further helped to preserve overall margins.

Kariyawasan stated that Haycarb Group will continue to focus on product and process improvements through its Lean Projects and R&D initiatives in 2015/16.

Puritas Ltd., the environmental engineering arm of the Group, is successfully expanding in to other countries in the region and Kariyawasan said that significant growth is expected from this segment of the business in the medium term.

Kariyawasanadded that the company remained confident of the medium to long term outlookof the industry and Haycarb’s role and positioning as a leading player in activated carbon solutions and purification systems. The competitiveness and reliability of its supply chain, focused marketing initiatives inkey segments and geographies, continued efforts on value added carbons combined with rapid expansion of itsenvironmental engineering arm is key to its longer term growth and sustainability.

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 Mohan Pandithage – Chairman, RajithaKariyawasan – Managing Director, Dhammika Perera, Arjun Senaratna, Sarath Ganegoda, JeevaniAbeyratne, DushanthaRanaraja, Nimal Perera, Dr. Sarath Abayawardana, SujeewaRajapakse, M.S.P. Udaya Kumara and Brahman Balaratnarajah.