Volatility in some global markets for Haycarb
View(s):Haycarb PLC reported revenue of Rs. 13.5 billion and profit after tax of Rs. 939 million for the financial year 2016/17, the company said this week.
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 commercialisation 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.
The biggest challenge faced by the group in 2016/17 fiscal year was 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.
Mr. 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.