Haycarb records turnover of Rs. 13.5 billion and profit before tax of Rs. 1.19 billion for 2016/17


The Sri Lankan multinational Haycarb PLC reported revenue of Rs. 13.5 billion, profit before tax of Rs. 1.19 billion and profit after tax of Rs. 939 million for financial year 2016/17. The earnings per share of equity holders of the company increased to Rs. 27.07 for the year.

The chairman of Haycarb PLC and its parent company Hayleys PLC, Mohan Pandithage said that the company posted a profit before tax of over Rs. 1 billion for the 5th consecutive year signaling the success of diversification and the resulting stability of the businesses driven by its long term strategies.

Haycarb PLC Managing Director, Rajitha Kariyawasan explained that the company was able to show both top and bottom line growth amidst key challenges in supply chain for raw material and volatility in some of its key global markets.

He added that successful development and commercialization of a number of value added high margin products, expansion of its strategic customer base and growth shown in key geographic markets together with the significant growth shown in the environmental engineering segment of the business (Puritas) helped to retain the overall performance of the group. He also said that cross functional teams delivered significant improvements in efficiencies and cost savings that added to the bottom line through lean projects that increased yields of specific equipment and product lines and reduced re-work.

The biggest challenge faced by the group in 2016/17 fiscal year is the significant shortages in charcoal supplies and resultant high prices in its Indonesian operations as a result of significant coconut crop reduction which impacted the results negatively. This was compounded by the oversupply of activated carbon from low cost manufacturers from India and Philippines resulting in the company not being able to pass on the cost increases to the end customer.

Kariyawasan noted that a significant portion of raw material sourced in Sri Lanka and Thailand were procured through environment friendly charcoaling initiatives that have been developed and promoted amongst suppliers by providing technology and financial assistance. The company continued to promote "Haritha Angara", the environment friendly charcoaling pits in Sri Lanka as a strategic initiative, while Carbokarn supported the operation of the vertical charcoaling kiln facility.

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