Haycarb reports 1H pre-tax profit of Rs. 563 m

Friday, 1 November 2013 03:52 - - {{hitsCtrl.values.hits}}

Haycarb PLC, the multinational business entity of Hayleys Group and the largest manufacturer of coconut shell-based activated carbon globally, consolidated its performance in the second quarter of financial year 2013/14. In results released to the Colombo Stock Exchange, Haycarb reported a turnover of Rs. 5 billion and profit before tax of Rs. 563 million for the six months ending 30 September 2013. Profit after tax recorded for the period was Rs. 470 million, out of which profit attributable to the equity holders of the company was Rs. 427 million. Stable performance despite challenges

Commenting on the performance, Haycarb Managing Director Rajitha Kariyawasan said: “I am pleased to report stable performance in the first half of the year, despite the challenges that are faced by the industry with the change in demand and supply dynamics particularly in the gold carbon industry which is a significant market segment of the Group, and the softening of activated carbon prices in spite of its key input cost, coconut charcoal prices increasing in the Q2.” Due to the significant drop in the gold carbon demand and severe downward price pressure in this segment as a result of the global crisis in the gold mining industry, Haycarb had to make quick adjustments in its sales, marketing and supply chain strategies. On the other hand the company had to contend with increase in charcoal prices in Sri Lanka, India, Thailand and Indonesia in the second quarter of the year, that had adverse margin implications. Lean initiatives and cost reduction programs Kariyawasan explained that in order to counter these challenges Haycarb has given increased emphasis to lean initiatives and short to medium term cost reduction programs. He further added that the continuing R&D and new product development initiatives and strategic plans set in motion to expand the market reach of Haycarb Group are also showing encouraging results. The Board of Directors of Haycarb PLC comprises Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Arjun Senaratna, Ranjeevan Seevaratnam, Sarath Ganegoda, Dammika Perera, Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana and Sujeewa Rajapakse.