Haycarb profit Rs 227 million in '07-08
Sri Lanka's Haycarb Group, the world's largest producer of coconut
shell based activated carbon, has reported 'substantial progress' in
2007-08, following strong performances from its manufacturing locations
in Sri Lanka and overseas, better sales and stable charcoal prices.
The Hayleys Group Company that accounts for more than 17 per cent of
global production in its category has reported a pre-tax profit of Rs
308 million for the year ending March 31, an increase of 82 per cent
over the previous year.
Profit from continuing operations after tax was up 78 per cent to Rs
274 million, while turnover in the year reviewed grew by more than Rs 1
billion or 34 per cent to Rs 4.2 billion.
The Group incurred a one-off loss of Rs 46.6 million on account of
discontinued operations, consequent to which it delivered an
attributable profit of Rs 227 million, an increase of 151 per cent over
the Rs 90 million of 2006-07. Profit attributable to equity holders of
the Company grew 183 per cent to Rs 179.6 million.
"These results signify substantial progress after two very difficult
years," Haycarb PLC Managing Director Ananda Hettiarachchy commented,
but cautioned that "nevertheless, a profit of Rs 229 million does not as
yet reflect the full potential of Haycarb in relation to the size of the
company."
He said a 23 per cent growth in sales in value terms had been
achieved through volume increases as well as an increase in the
percentage of new value added carbons in the Group's product mix. New
technology and processes and innovations introduced in the year had
enabled Haycarb to convert old stocks into a saleable product and
significantly reduce working capital, Hettiarachchy disclosed.
However, the Group's manufacturing operations in Sri Lanka, Indonesia
and Thailand also had to contend with several adverse factors, including
the appreciation of local currencies against the US Dollar in all of
these locations. Additionally, the rising prices of furnace oil as well
as the effect of high inflation and increasing electricity costs in Sri
Lanka had a negative impact on potential growth in the year under
review, and would remain challenges in the year ahead, he said.
Among the positives of the year concluded was the fact that the
strategies implemented by the Group in the course of two difficult
years, during which raw material shortages and other factors affected
growth, were clearly contributing to progress, Hettiarachchy said.
Haycarb's companies in Indonesia and Thailand had achieved volume
increases, been able to secure better prices and increase the number of
value added products in their portfolios, he explained.
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