Haycarb's net profit surpasses Rs. 1 b

Haycarb PLC, the coconut shell based activated carbon manufacturer and exporter, posted a record performance in the financial year 2012/13.

The Hayleys Group's multinational activated carbon business noted significant achievement of several key performance milestones in an interim statement filed with the Colombo Stock Exchange.

Mohan Pandithage

Haycarb in 2012/13 recorded a revenue of Rs. 10.1 billion, up from Rs. 8.5 billion in the previous financial year.

The company posted a profit before tax of Rs. 1.22 billion and profit after tax of Rs. 1.03 billion compared to Rs. 657 million and Rs. 523 million in the preceding year.

Earnings per share of equity holders of the company doubled to Rs. 31.50, compared to the previous financial year.

Haycarb PLC and Hayleys PLC, Chairman, Mohan Pandithage said that the company had posted exceptional results to surpass Rs. one billion in profit after tax in spite of the economic slowdown that affected some major export markets.

Haycarb PLC, Managing Director Rajitha Kariyawasan attributed concentrated efforts on marketing, sales and new business development, emphasis on driving high margin and value added products, full capacity operations together with extensive programs on waste reduction and productivity enhancements as key to the year-end performance.

"Our marketing subsidiaries in Europe, Australia and in the USA brought in worthwhile contributions to both top and bottom lines," he said.

"The relative stability of pricing of our key raw material coconut shell charcoal, and the devaluation of the currencies in Sri Lanka and that of our other Asian manufacturing locations helped us favourably, where the net benefits could be passed on to customers through price adjustments to protect and grow our sales base," Kariyawasan said.

During the year, Haycarb PLC through its joint venture in Thailand, Carbokarn Company Ltd, purchased 100% equity of Shizuka Company Ltd, Thailand, expanding the activated carbon manufacturing capacity of the Group. In Sri Lanka, it incorporated Haycarb Value Added Products Private Limited as a fully owned subsidiary to manufacture and export value added activated carbon products.