Haycarb PLC from the Hayleys Group has reported a pre-tax profit of Rs 548.4 million for the nine months ending 31st December 2010, on a consolidated turnover of Rs 4.7 billion saying turnover rose due to strong demand for activated carbon and maximum capacity utilization.
However it said in a statement the net profit of Haycarb’s Sri Lankan operations for the third quarter reflected a decline of 17 % over the corresponding quarter, principally as a result of higher charcoal prices and the appreciation of the local currency against the US Dollar, the company said. Due to the acute shortage of charcoal locally the company was compelled to import 55 % of its total requirement.
“The continuing increase of charcoal purchase prices could not be passed on to customers, and exerted significant pressure on our bottom line,” Haycarb Managing Director Rajitha Kariyawasan said.
“However, the strong performance of overseas subsidiaries, maximization of throughput and our focus on value added products enabled the company to mitigate this exposure to some extent.”
He added that the significant appreciation of local currencies in Indonesia and Thailand against the US Dollar and an increase of furnace oil cost in Sri Lanka also contributed to a reduction in the gross margin of the group.
The pioneer manufacturer of activated carbon in any coconut producing country, 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.