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The Sri Lankan multinational Haycarb PLC reported a revenue growth of 5% to Rs. 8.4 billion and profit before tax of Rs. 702 million for nine months ending 31st December 2015. The profit after tax stood at Rs. 600 million.
Commenting on the financial results, Haycarb PLC Managing Director, Rajitha Kariyawasan said, “The Company operated under adverse market conditions in its export markets due to the economic downturn and currency devaluation / volatility in its major markets in Europe, Russia, China and Australia and the continued overall depressed conditions in the gold industry. In addition the high cost of charcoal imports to Sri Lanka and the increase in charcoal prices in Indonesia and Thailand impacted the profit margins. Given the challenges in the external environment, focus on lean manufacturing practices and the savings that continue to accrue from energy saving initiatives launched previously helped to maintain profitability.”
He further stated that the growth of the environmental engineering arm, Puritas (Pvt.) Ltd. in to the small and medium scale water/waste-water purification systems in Sri Lanka and the region has resulted in a significant increase in revenue and profitability in this business segment in Q3 of 2015/16.
In its initiatives to strengthen the raw material supply networks Haycarb has successfully introduced an environmental friendly charcoaling facility in Thailand during the third quarter, and will continue to build partnerships through providing technology and funding for environment friendly charcoaling in all its manufacturing locations.
Kariyawasan said he was pleased to note that the new product development and commercialisation projects resulted in the addition of several new products and accounts to the sales portfolio that further helped to protect overall margins whilst the Company pursued strategies to increase and expand its market share in existing and new markets.
Kariyawasan said that the product development and marketing initiatives together with significant growth in Puritas (Pvt.) Ltd., is expected to contribute positively to the top and bottom lines to offset the negative impacts of the challenges highlighted above, in the short to the medium term. The Company is confident of the medium to long term outlook of the industry and Haycarb’s strengths to position as a leading player in activated carbon solutions and purification systems.
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 of Chairman Mohan Pandithage, Managing Director Rajitha Kariyawasan, Dhammika Perera, Arjun Senaratna, Sarath Ganegoda, Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana, Sujeewa Rajapakse, M. S. P. Udaya Kumara and Brahman Balaratnarajah.
