Haycarb reports 3Q PBT of Rs. 752 million under challenging market conditions

Friday, 7 February 2014 01:02 - - {{hitsCtrl.values.hits}}

Haycarb PLC, the multinational business of Hayleys Group and the largest manufacturer of coconut shell based activated carbon globally posted a PBT of Rs. 752 million for 9 months ended 31 December 2013 In results released to the Colombo Stock Exchange, Haycarb reported a turnover of Rs. 7.6 billion for the period under review. The profit before tax was Rs. 752 million and profit after tax was Rs. 629 million, out of which profit attributable to the equity holders of the company was Rs. 552 million. Commenting on the results, Haycarb PLC Managing Director Rajitha Kariyawasan said that the performance was satisfactory considering the challenges that the company and the industry faced in the period under review. He stated: “The prices and demand for activated carbon was affected globally due to the downturn in the gold mining industry, adverse supply dynamics and escalating costs in the raw material prices.” He further noted that the company had to contend with significant increases in charcoal prices particularly in Sri Lanka and India, whilst charcoal prices in Thailand and Indonesia continue to be under pressure to a lesser degree. Kariyawasan said that in order to face the above challenges the company is re-aligning its marketing, operational and supply chain strategies. Significant attention is given to continuous improvement projects driven by the company’s Lean Manufacturing initiatives to eliminate waste and improve productivity whilst management attention is given on short to medium term cost reduction initiatives to improve margins. Kariyawasan further added: “The company is pleased to report that some of the strategic new product development projects have reached significant milestones. At the same time the company is continuing its efforts to increase market share in new geographic locations and product segments aligned to its capacity expansions which are coming on stream in the near future.” The Board of Directors of Haycarb PLC comprises Mohan Pandithage (Chairman), Rajitha Kariyawasan (Managing Director), Arjun Senaratna, Ranjeevan Seevaratnam, Sarath Ganegoda, Dhammika Perera, Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana, Sujeewa Rajapakse and Shyamalie Weerasooriya (Alternate director to Dhammika Perera).