[Business Advertorial]

Overseas operations help Haycarb in first Q

The Haycarb Group, comprising specialised activated carbon manufacturing operations in Sri Lanka, Thailand and Indonesia, has achieved healthy revenue growth in the first quarter of 2008-09, but no significant growth in profits compared to the first quarter of last year as a result of shortages of coconut shell charcoal, higher prices for this raw material and substantially higher oil prices.

The Hayleys subsidiary, the world’s largest producer of coconut shell based activated carbon accounting for more than 17 per cent of global production, has reported that turnover grew 16 per cent to Rs 1,060 million in the three months ending June 30, 2008.

However, cost of sales (mainly raw materials, furnace oil, electricity, freight and wages) grew 28 per cent over the corresponding quarter, figures released to the Colombo Stock Exchange reveal.

Strong performances by the Group’s manufacturing plants in Thailand and Indonesia, a greater emphasis on higher value carbons in its product mix and a change in the results of discontinued operations have enabled Haycarb to post a profit after tax of Rs 64.9 million, a marginal improvement over the first quarter of 2007-08, the company said.

Describing the performance as satisfactory in the context of the adverse factors that prevailed in the quarter under review, Haycarb PLC Managing Director Ananda Hettiarachchy said adverse weather conditions and increased demand had kept local charcoal prices 20 per cent higher than in the first quarter of the previous year.

The shortage of supplies compelled the company to import charcoal, incurring additional costs in the period reviewed.

Furthermore, the weaker US Dollar continued to adversely impact the company’s profit.

Hettiarachchy said the prospects for the rest of the year were better, due to the productivity improvements and cost saving measures implemented in the first quarter. Another significant positive factor has been the company’s ability to reduce its finance costs by substantially reducing working capital. In the quarter reviewed, net finance costs declined by 82 per cent.

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People’s Bank ‘Jaya Sri 2008’

State banking giant People’s Bank continues to produce winners through its ‘Jaya Sri 2008’ grand draw. The monthly draw for May was held at the People’s Bank Head Office, under the patronage of SDGM, Corporate and Institutional Banking, Domestic and Development Credit Kapila Ariyaratne.

Commissioner, Provincial Revenue G. A. N. Jayantha, and Tax Officer of the Department of Revenue,Western Provincial Council M. A. S. I. Abeywardena and the internal audit officers of People’s Bank were also present.

‘Jaya Sri’ 2008 consists of an array of valuable gifts for those who save with People’s Bank. Winners of each monthly draw will win a valuable car as the first prize, followed by five computers, five digital cameras, five refrigerators and five televisions. Prizes also include 325 DVD players, 325 sewing machines and 325 mobile phones.

Rs. 10 million is on offer as the grand prize for the year-end grand draw of ‘Jaya Sri 2008’. Anyone who has a People’s Bank savings or current account with a minimum balance of Rs. 25,000 is eligible for the draw.