Haycarb reports 3Q PBT of Rs. 752 million under challenging market conditions
View(s):Haycarb PLC, the multinational business of Hayleys Group and the largest manufacturer of coconut shell based activated carbon globally, posted a PBT (profit before tax) of Rs. 752 million for 9 months ended 31 December 2013 under challenging conditions.
According to a company announcement, Haycarb reported a turnover of Rs. 7.6 billion for the period under review. The profit before tax was Rs. 752 million and profit after tax was Rs. 629 million, out of which profit attributable to the equity holders ofthe company was Rs. 552 million.
Rajitha Kariyawasan, Managing Director of Haycarb PLC said that the performance was satisfactory considering the challenges that the company and the industry faced in the period under review. He stated, “The prices and demand for activated carbon were affected globally due to the downturn in the gold mining industry, adverse supply dynamics and escalating costs in the raw material prices”. He further noted that the company had to contend with significant increases in charcoal prices particularly in Sri Lanka and India, whilst charcoal prices in Thailand and Indonesia continue to be under pressure to a lesser degree.
Mr. Kariyawasan said that in order to face the above challenges the company is re-aligning its marketing, operational and supply chain strategies.
“Significant attention is given to continuous improvement projects driven by the company’s Lean Manufacturing initiatives to eliminate waste and improve productivity whilst management attention is given on short to medium term cost reduction initiatives to improve margins,” the statement said.
Mr. Kariyawasan further added, “The company is pleased to report that some of the strategic new product development projects have reached significant milestones. At the same time, the company is continuing its efforts to increase market share in new geographic locations and product segments aligned to its capacity expansions which are coming on stream in the near future.”