Haycarb profit after tax soars 500% to Rs. 230m in nine months

A greater focus on value-added carbons in its product mix, higher sales prices and stable charcoal supply in the first nine months of 2007-08 have enabled Haycarb PLC to make a noteworthy recovery from a difficult previous year.

Results released by the Hayleys Group's multinational activated carbon company to the Colombo Stock Exchange reveal that the company's profit before tax grew from Rs. 45 million in the corresponding period of the last financial year to Rs. 250 million for the nine months ending December 31, 2007.

Profit after tax for this period, at Rs. 230 million reflected a growth of more than 500 per cent over the corresponding nine months of 2006-07.

Turnover for the period reviewed grew by 36 per cent to top Rs. 3 billion. Profit attributable to equity holders of the parent company for the three quarters reviewed rose to Rs. 198 million from Rs. 14.6 million a year previously.

Haycarb's encouraging bottom line performance was also reflected in its earnings per ordinary share, which increased from 49 cents as at December 31, 2006 to Rs. 6.67 at the end of 2007.

Haycarb Managing Director Ananda Hettiarachchy said the company's results represent strong performances from all its manufacturing operations in Sri Lanka as well as those in Indonesia and Thailand and the impact of better working capital management.

He said that the Group had reduced stock by Rs. 191 million, thereby generating significant savings in the nine months reviewed.

These results are also particularly noteworthy in the context of rising costs of local production, particularly higher fuel prices and the adverse impact of currency fluctuation in the third quarter, Hettiarachchy said.