Haycarb PLC has reported a revenue growth of 25 per cent to Rs 5.9 billion for the nine months ending 31st December 2011, with stable demand for the Company’s product portfolio supported by improvements in the global marketing, manufacturing and supply chain activities.
In the results filed with the Colombo Stock exchange, the Hayleys Group’s top notch activated carbon and solutions business reported a profit before tax of Rs 535 million and a Profit after tax of Rs 441 million for the 3rd quarter ended Dec 31st, 2011.
Significant investments in working capital to build up its charcoal inventory that helped to stabilize charcoal prices and improvements in manufacturing efficiencies along with improved prices in the product portfolio, enabled Haycarb PLC to improve margins in the third quarter of 2011-12.
Haycarb Managing Director Rajitha Kariyawasan said the consolidated profit figures for the nine months reflected a substantially improved position over that of the first six months of the year.
“Demand for our products remain strong despite the negative outlook in a number of key international markets, especially in Europe,” he said, disclosing that investments in capital expenditure in the current year to expand internal capacities, upgrade manufacturing plants and the continuation of the Company’s emphasis on value addition had helped top line growth and also contributed to improved margins.
Meanwhile, investments in building up inventories of coconut shell charcoal have resulted in greater stability in the supply and prices of Haycarb’s principal raw material, enabling the company to reduce volatility in product prices and run all its factories in Sri Lanka and overseas at full capacity, Mr. Kariyawasan said.
One of the highlights of the period reviewed was the upgrading of Haycarb’s information system to SAP Enterprise Resource Planning (ERP) system. The implementation of SAP was completed in nine months, yet another creditable achievement by the Haycarb team, fulfilling a long-felt need for a better integrated information system to support existing business and future growth, Mr. Kariyawasan said.
The pioneer manufacturer of activated carbon in Sri Lanka 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 A. M. Pandithage – Chairman, H. S. R. Kariyawasan – Managing Director, R. P. Peris, R. Seevaratnam, A. M. Senaratna, K. D. D. Perera, S. C. Ganegoda, Mrs. M. J. A. S. Abeyratne, D. E. Ranaraja, W. D. N. H. Perera and Dr. S. A. K. Abayawardana.