Haycarb PLC, the Hayleys Group’s global activated carbon manufacturer in Sri Lanka, has maintained the momentum of revenue and profit growth in the third quarter, despite challenges in traditional markets.
The company reported revenue of Rs 8 billion for the nine months ending 31st December 2012, and profit before tax of Rs 805 million for the same period, in a performance attributed to maximum capacity utilisation, value addition and the development of new markets.
In a filing with the Colombo Stock Exchange, Haycarb PLC said net profit for the nine months was Rs 683 million, and profit attributable to equity holders of the company was Rs 619 million.
Haycarb PLC Managing Director Rajitha Kariyawasan said the company ran all manufacturing plants at optimum capacity during the review period and focussed extra attention on developing new markets outside traditional geographies. In addition, continued emphasis on value added carbons, further complemented by the devaluation of the Rupee, enabled the company to maintain overall margins, he said.
Improved efficiencies through lean manufacturing resulted in increased throughput from existing configurations and minimised waste, enabling the company to mitigate significant increases in furnace oil and wages costs.
Haycarb has continued its strategy of investing in charcoal inventory with significant working capital funding to ensure supply security. The softening of charcoal prices was adequately passed on to customers worldwide, safeguarding the company’s market share and growth initiatives, Mr. Kariyawasan said.
Haycarb increased its activated carbon manufacturing capacity by 2,500 MT in the period under review with the acquisition of a second plant in Thailand, and will pursue strategy initiatives to expand capacity in new locations in Indonesia coupled with continued emphasis on value addition projects in Sri Lanka, he disclosed.
The pioneer manufacturer of activated carbon in any coconut producing country, Haycarb is also the world’s largest producer of coconut shell-based activated carbon. The Group, whose manufacturing facilities in Sri Lanka, Thailand and Indonesia are supported by marketing offices in the UK, Australia and USA, produces standard, washed and impregnated carbons in granular, pellet and powder form.
The Board of Directors of Haycarb PLC comprises Messrs Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Ranjeevan Seevaratnam, Arjun Senaratna, Dhammika Perera, Sarath Ganegoda, Mrs. Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera and Dr. Sarath Abayawardana.