Haycarb post-tax profit falls in 2013/14
View(s):Haycarb PLC post-tax profit fell to Rs. 892 million in the year 2013/14 (end March) from Rs. 1,035 million while revenue was up at Rs. 10.3 billion against Rs. 10.1 billion in the previous year.
Pre-tax profit was also slightly lower at Rs. 1,033 million, compared to Rs.1,228 million in earlier year.
Nevertheless Haycarb and Hayleys Group chairman Mohan Pandithage described results – in a media statement – as noteworthy and displayed the resilience of the company, considering the adverse market conditions and the escalation of raw material and other input costs with which the business contended during the year.
Haycarb Managing Director, Rajitha Kariyawasan outlining the external environment noted that “The slowdown of the gold mining industry and mediocre economic recovery in our traditional developed markets necessitated price reductions to retain market share. The market conditions were exacerbated by the stiff competition created by the entry into these markets by manufacturers in countries such as India, Philippines and Indonesia who had built new and expanded capacities”.
He further explained that on the supply side, raw material prices increased steeply in Sri Lanka and India in the second half of the year impacting on profitability of the Sri Lankan operation, as increases in cost of raw material and other inputs could not be passed on to customers due to external market conditions.
Haycarb is the pioneer manufacturer of coconut shell activated carbon in any coconut producing country with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the USA, UK and Australia.
A significant milestone for the Haycarb Group during the year was the design, fabrication and installation of the second Activated Carbon Manufacturing Plant in the Palu Province of Central Sulawesi, Indonesia under the subsidiary PT Haycarb Palu Mitra Company.
Also the additional ISO 9001 and NSF certifications obtained in Thailand and Indonesia were noteworthy milestones to enhance the systems and product portfolio offering from its overseas manufacturing operations.