Haycarb records turnover of Rs. 5.2 b and PBT of Rs. 362 m for 1H 2014/15

Thursday, 30 October 2014 00:33 - - {{hitsCtrl.values.hits}}

The Sri Lankan multinational Haycarb PLC reported a turnover of Rs. 5.2 billion and profit before tax of Rs. 362 million for six months ending 30 September 2014. The profit after tax stood at Rs. 304 million. Haycarb PLC Managing Director Rajitha Kariyawasan said, “The continuing trend of high raw material prices in Sri Lanka and India combined with the inability to transfer the resultant cost increase adequately to its customers, affected the performance of Sri Lanka operations adversely. The increase in raw material prices in Indonesia and in Thailand also impacted on the Group results negatively.”

He further explained, “The company balances the requirement to increase prices with the need to retain and grow key customer accounts and new markets to drive its medium to long term growth strategy.” Significant cost savings were achieved through Lean and Cost reduction initiatives to mitigate the impact of drop in gross margins to a certain degree. He further explained that the company is rationalising its product portfolio and manufacturing capacities, whilst investing in development and commercialisation of new value added products. The company continues to expand its geographical market reach and growth in key markets to capitalise on the emerging trends in the activated carbon and purification solution segments. Puritas Ltd., the environmental engineering arm of the Haycarb Group has made progress in its water systems projects in Sri Lanka and overseas. The growth in this sector is expected to be significant. Even though the Group is facing certain challenges in the short term, Kariyawasan said that the Company remained confident of the medium to long term outlook. Leveraging on the expertise of Puritas Ltd. in water treatment systems, Haycarb Group has successfully completed a key CSR project, to provide purified drinking water to Maithreepura, a village in Padaviya, in the North Central Province of Sri Lanka that was affected by Chronic Kidney Disease (CKD). Under this initiative the company has constructed and commissioned a Water Purification Plant that includes Reverse Osmosis (RO) system coupled with an extensive water distribution system. This Plant has the capacity to supply the drinking and cooking water needs of over 1500 people covering the entire village, providing a complete solution to the CKD affected community. This project is combined with a holistic approach to community development including conducting health camps, awareness campaigns on best agricultural practices and providing library and computer facilities etc. to the village. The Group plans to extend this CSR initiative to cover a number of villages under the patronage of other key sectors of the Hayleys Group. 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, contributing 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 Messrs Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Arjun Senaratna, Sarath Ganegoda, Dhammika Perera, Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana and Sujeewa Rajapakse.