Haycarb posts Rs 334 million PBT in 1H
Haycarb PLC has reported revenue growth of 21 per cent to Rs 3.8
billion for the six months ending September 30, 2011, with stable demand
in global markets and the company's reliable supply stream of high
quality carbons with a product mix of value-added carbons protecting its
top line in a period of narrowing margins.
The Hayleys Group's top notch activated carbon manufacturing business
reported profit before tax of Rs 334 million and net profit of Rs 279
million for the six months.
Haycarb Managing Director Rajitha Kariyawasan said these profit
figures, though lower by 21 and 19 per cent respectively over the
corresponding period of the previous year where the price pressure on
charcoal was less significant, reflected a stable level of profit in the
context of the unprecedented increases in the prices of coconut shell
charcoal, its principal raw material.
He disclosed that raw material prices had increased by more than 40
per cent point-to-point since March 31, 2011 in Sri Lanka, Haycarb's
largest manufacturing base, and similar trends experienced in its other
manufacturing locations at different levels, had squeezed gross margins
of the company's manufacturing operations. The company's far sighted
decision and its ability to procure charcoal supplies at high prices
without any disruption of carbon supplies to its valued customers
further enhanced its reputation as a reliable and a quality supplier
during a period of serious supply constraints in coconut charcoal and
the carbon market, Kariyawasan said.
He said the company had decided to invest heavily to build its
charcoal inventory to overcome the on-going issue of raw material
shortage. The company had also continued its capital expenditure
programme, investing in additional value-added carbon projects for new
applications, expanding and upgrading its manufacturing locations, and
introducing the SAP Enterprise Resource Planning (ERP) system for its
Sri Lankan operations.
The investment in SAP realises a long-felt need to have a better and
integrated information system to create the necessary systems platform
for future growth.
Haycarb is also the world's largest producer of coconut shell-based
activated carbon.
The Group, whose manufacturing facilities in Sri Lanka, Thailand and
Indonesia are supported by marketing offices in the UK, Australia and
USA, produces standard, washed and impregnated carbons in granular,
pellet and powder form.
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