Haycarb records Rs. 892m PAT for 2013-14

Haycarb PLC reported a turnover of Rs. 10.3 billion and profit before tax of Rs. 1.0 billion for 2013-14.

Haycarb is the pioneer manufacturer of coconut shell activated carbon among coconut producing countries with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the USA, UK and Australia.

The Group contributes net foreign exchange revenues with its value adding processes while remaining a leading and technologically superior manufacturer in its chosen segment.

Haycarb reported a revenue of Rs. 10.3 billion for 2013-14 compared to Rs. 10.1 billion in the previous year. The company recorded a profit before tax of Rs. 1,033 million and profit after tax of Rs. 892 million, compared to Rs. 1,228 million and Rs. 1,035 million in the previous year.

The earnings per share of equity holders of the company were Rs. 26.51 per share.

Haycarb PLC and Hayleys PLC Chairman Mohan Pandithage said that the results display the resilience of the company, considering the adverse market conditions and the escalation of raw material and other input costs with which the business contended with.

Haycarb PLC Managing Director, Rajitha Kariyawasan said, "The slowdown of the gold mining industry and mediocre economic recovery in our traditional developed markets necessitated price reductions to retain market share. The market conditions were exacerbated by the stiff competition created by the entry into these markets by manufacturers in countries such as India, Philippines and Indonesia which had built new and expanded capacities."

He said that on the supply side, raw material prices increased steeply in Sri Lanka and India in the second half of the year impacting on profitability of the Sri Lankan operation, as increases in cost of raw material and other inputs could not be passed on to customers due to external market conditions.

"Even though significant competition in global markets and unrelenting increases in input costs resulted in a reduction of Profit Before Tax by 16% compared to last year. Top line volume growth, timely initiatives to expand to new markets, lean and cost saving projects primarily on energy management and commercialisation of value added products paved the way for the company to report a Profit Before Tax in excess of Rs. 1 billion for the second consecutive year," Kariyawasan said.

Notable performances by the manufacturing entities in Thailand and Indonesia including the local market initiatives that expanded local sales bases, contributed significantly to overall Group performance, he said.

The growth in top and bottom line reported by Eurocarb, the marketing subsidiary operating in the European region, was encouraging. Similarly, the Group's environmental engineering company, Puritas (Pvt) Ltd showed significant growth in its net income and operational footprint.

A significant milestone for the Haycarb Group during the year was the design, fabrication and installation of the second Activated Carbon Manufacturing Plant in the Palu Province of Central Sulawesi, Indonesia under the subsidiary PT Haycarb Palu Mitra Company.

Also the additional ISO 9001 and NSF certifications obtained in Thailand and Indonesia will enhance the systems and product portfolio offering from its overseas manufacturing operations.

Haycarb is embarking on initiatives to increase Haycarb brand awareness and is strengthening the marketing and support teams in Europe, USA and Asia apart from its central resources and enhancing and setting up new distributorships in key growth markets.

The company will continue development and commercialisation of value added products and also expand its product portfolio in carbon and associated service segments while enhancing broader product and process abilities in its overseas manufacturing locations.