Haycarb records turnover of Rs. 8.9 b & profit before tax of Rs. 502 m for H1 2018/19

Sri Lankan multinational Haycarb Plc reported revenue of Rs. 8.9 billion and profit before tax of Rs. 502 million for the six months ending 30 September 2018. 

The profit after tax stood at Rs. 428 million.  

Haycarb Plc Managing Director Rajitha Kariyawasan said that the adjustment of sales prices due to the sharp increases in raw material cost resulted in the growth in turnover. As the shortage and cost escalation of raw material coconut charcoal continued during the first half of the year in most of the supply locations, Haycarb focused on its lean platform, targeted cost-saving initiatives and process improvements to minimise price escalations to its customers while protecting the group’s profitability. 

Considerable success achieved from product development efforts to expand its value-added product portfolio strongly contributed to the overall business performance.

Kariyawasan said: “Though we are expecting improved coconut crop and charcoal availability in most of our locations in the 2019 coconut season, the company is expecting a challenging period due to the increased competition from key coconut carbon-producing countries.” 

He further noted that Haycarb’s strategy of broad-basing the raw material supply network and support for environmentally friendly charcoaling methods under its flagship initiative ‘Haritha Angara’ had contributed to the improvement of sustainable charcoal supply, which will be continued as a core supply chain strategy of the group.  

Kariyawasan noted that Puritas Ltd., the environmental engineering business segment, is expected to continue to be a key contributor to the group’s performance during the second half of the year, with projected growth in its business in water and waste water treatment systems in Sri Lanka and the region. 

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 UA, 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, 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.