Sri Lanka’s Haycarb PLC record revenue of Rs.3.3Bln,PBT Rs.151Mln for Q1 2017/18

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(PRESS RELEASE)The Sri Lankan multinational Haycarb PLC reported revenue of Rs. 3.3 billion and profit before tax of Rs 151 million for the first quarter of 2017/18. The profit after tax stood at Rs. 121 million.

Haycarb PLC Managing Director Rajitha Kariyawasan said that while the company’s initiatives to increase throughput and the value added portfolio together with the geographical expansion of export markets contributed to the growth in turnover, the challenges faced in Indonesian operations due to the shortages in raw material supply and resultant high prices and the increases in charcoal prices in Sri Lanka, India and Thailand negatively impacted the Group’s profitability.

He further said, “Shortages and price increases in coconut shell based charcoal supplies are expected to continue through the current financial year in all the key coconut producing countries in Asia.

The challenge in passing its full cost impact to end customers is a major concern to maintain activated carbon business’ expected margins through the year.

The Company is in the process of reviewing its prices to pass on a fair part of this impact to its customers after extensive discussions. Central and country specific management teams are working aggressively to ensure a secure supply chain in the current adverse situation whilst focusing on controlling costs and improving efficiencies through the Lean Manufacturing platform. Haycarb’s reputation to manage difficult supply chain issues effectively, without interruption of deliveries to its valued customers is well demonstrated by example in the past.”

On a separate note, Kariyawasan said that the growth in the environmental engineering arm Puritas (Pvt.) Ltd. is expected to contribute positively to the profitability of the Group.

In the background of increasing emphasis on environmental sustainability worldwide, Haycarb remains positive in its medium to long term outlook in its activated carbon and water treatment systems businesses.