Haycarb records: Rs 8 b turnover

Haycarb PLC, of the Hayleys Group, reported a turnover of Rs. 8 billion and profit before tax of Rs. 601 million for the nine months ending December 31, 2014.

The profit after tax stood at Rs. 508 million. Haycarb PLC Managing Director, Rajitha Kariyawasan said, "Continuation of the high raw material prices in Sri Lanka and India and the inability to pass on the resultant cost increases to customers impacted the profitability of the Sri Lanka operations significantly.

He said the need to increase product prices is evaluated and balanced against the need to retain key customer accounts and strategies formulated to capture new markets to grow the top line.

The depreciation of the currencies in some of Haycarb's key markets, notably the depreciation of the Euro, Australian Dollar and Japanese Yen resulted in exerting more pressure on produc pricing.

The challenges on cost increases were offset to some degree from cost reductions achieved through lean initiatives that helped reduce energy costs in manufacturing operations and increase productivity.

The company is exploring the possibility of optimising and rebalancing its manufacturing capacity along with restructuring measures in the supply chain to reduce costs in the medium term.

Haycarb continues to invest in development and commercialisation of specialised value added products, market expansion and brand presence.

The Environmental Engineering Solutions arm, Puritas (Pvt) Ltd., made significant progress during the nine months under review as it increased its local and regional presence for small to medium sized purification projects.

This sector will remain a key focus for diversification and future growth of the Group. Kariyawasan also said, "The industry outlook remains strong given the increasing demand for purification solutions globally."

"Haycarb is a strong and a leading player renowned for its product and technical excellence backed by a formidable supply chain and marketing network. We remain confident of the medium and long term outlook," he said.

Haycarb continues to support Maithreepura, a village in Padaviya in the North Central Province, where it implemented a key CSR project to provide purified drinking water to a community of over 1500 families affected by the Chronic Kidney disease (CKD) by constructing and commissioning a water purification plant that includes a Reverse Osmosis (RO) system coupled with an extensive water distribution system.

"It is with pleasure and satisfaction that we note other business sectors of the Hayleys Group funding five more villages and projects coordinated and managed through Puritas, to cover six villages under the same Group initiative Puritas Sath Diyawara.

Haycarb is the pioneer manufacturer of coconut shell activated carbon in any coconut producing country with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the USA, UK and Australia, contributing net foreign exchange revenues with its value adding processes while remaining a leading and technologically superior manufacturer.