Hike in coconut shell-based charcoal prices hurts Haycarb business
View(s):Increase in prices of coconut shell-based charcoal impacted the profitability of Haycarb’s Sri Lanka and overseas operations, said Haycarb PLC Managing Director, Rajitha Kariyawasan. In its annual report for the year ended March 2015, the company MD said this issue prevented the company from passing the increase in raw material and other input costs to end customers adequately.
“The markets continued to be affected by the depressed gold mining industry and low-cost competition from countries such as Philippines, Indonesia and India. The depreciation of currencies in key markets in which we operate, notably in the second half ofthe year, contributed to the erosion of margins.”
Haycarb reported revenue of Rs. 11.9 billion, profit before tax of Rs. 1,070 million and profit after tax of Rs. 873 million for 2014/15. Comparative figures for the previous 2013-14 were not given in the media release.
Haycarb PLC and Hayleys PLC Chairman Mohan Pandithage said that Haycarb has consolidated its position as a leading manufacturer of coconut shell based activated carbon and a provider of total solutions in related areas and had achieved a profit before tax of over Rs. 1 billion for the 3rd consecutive year.
Mr. Kariyawasam said the Haycarb Group crossed the significant milestone of 40,000 MT of installed manufacturing capacity per year with the commissioning of the new plant in Indonesia and a major thrust on lean initiatives targeting productivity improvements. The lean projects launched by technical and manufacturing teams to achieve cost savings, notably through energy saving initiatives helped the company to retain its competitiveness.