Haycarb reports profit and turnover growth in first half

Solid performances by its overseas manufacturing subsidiaries and the profits generated by a strategic disposal of investments has enabled Haycarb PLC, the Hayleys Group’s multinational activated carbon company to achieve a more than five fold increase in pre and post tax profits in the first half of 2007-08.

The company’s profit before tax for the six months ending September 30, 2007 grew 445 per cent over the first half of the previous year to Rs. 213.3 million, according to figures released to the Colombo Stock Exchange this week.

Profit after tax for the period, at Rs. 200 million reflected a growth of 472 per cent. Turnover for the period reviewed increased by 23 per cent to Rs. Two billion indicating an overall improvement in operating conditions for the company.

Elaborating on these results, Haycarb Managing Director Ananda Hettiarachchi said the sale of investments during the quarter had contributed Rs. 66 million to the results achieved.

“Even discounting this gain, the post tax profit growth achieved by the Haycarb Group is a noteworthy 284 per cent, and reflects the strong performance of all its manufacturing operations, especially those in Indonesia and Thailand,” he said.

Profit attributable to equity holders of the parent company grew from Rs. 19.2 million for the first half of 2006-07 to Rs. 177.9 million for the concluded half year, an increase of more than 800 per cent.

The Group’s improved performance was also reflected in its earnings per ordinary share, which increased from 65 cents as at September 30, 2006 to Rs. 5.99 at the end of September 2007.

Haycarb was hit by raw material shortages due to a drop in domestic coconut production during much of 2005-06 and the high prices of charcoal, its main raw material.