Haycarb maintains growth

Higher local output made possible by improved raw material supply has combined with better prices generated by value added products to help Haycarb PLC continue its performance of 2008-09 into the first quarter of the current year.

Releasing results for the three months ending June 30, 2009 to the Colombo Stock Exchange this week, the Hayleys Group's world-leading activated carbon manufacturing business reported profit after tax of Rs. 102.4 million, a growth of 58 per cent. Revenue grew 17 per cent to Rs. 1,244.5 million, and profit before tax increased by 91 per cent to Rs. 118.5 million, the company said.

Haycarb, Managing Director Ananda Hettiarachchy said that although the company's local manufacturing operation was able to produce higher volumes as a result of better availability of charcoal in comparison to the previous year, Haycarb had to continue to import charcoal at a higher cost to maximize utilization of capacity.

Local manufacturing had also benefitted by better energy prices and a somewhat more favourable exchange rate, Hettiarachchy said.

Haycarb's manufacturing companies in Thailand and Indonesia, which enjoy more favourable cost bases, had performed well in the quarter under review, and the Group's Australian company had begun turning around, he said.

The world's largest manufacturer of coconut shell based activated carbon, Haycarb has sharpened its focus on marketing value added products that fetch higher prices and achieved a greater degree of integration across its local and overseas operations.