Haycarb: Challenging period ahead from other coconut carbon producers
View(s):Sri Lankan multinational Haycarb PLC which reported a post-tax profit of Rs. 428 million for the six months to end September 2018, sharply higher by 70 per cent from the corresponding period in 2017, said on Thursday that the company was going through a challenging period owing to increased competition from other countries.
“Though we are expecting improved coconut crop and charcoal availability in most of our locations in the 2019 coconut season, the company is expecting a challenging period due to the increased competition from key coconut carbon producing countries,” said Haycarb PLC Managing Director, Mr. Rajitha Kariyawasan in a public statement on the results.
The company reported revenue of Rs. 8.9 billion, up by 26 per cent from the corresponding 2017 period, and profit before tax of Rs. 502 million for the period under review.
He said that the adjustment of sales prices due to the sharp increases in raw material cost resulted in the growth in turnover.
As the shortage and cost escalation of raw material, coconut charcoal, continued during the first half of the year in most of the supply locations, Haycarb said it focussed on its lean platform, targeted cost saving initiatives and process improvements to minimise price escalations to our customers while protecting the group’s profitability.
Considerable success achieved from product development efforts to expand its value added product portfolio strongly contributed to the overall business performance.
Mr. Kariyawasan noted that Puritas (Pvt.) Ltd., the environmental engineering business segment is expected to continue to be a key contributor to the group’s performance during the second half of the year with projected growth in its business in water and waste water treatment systems in Sri Lanka and in the Region.
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 US, UK and Australia. The company contributes net foreign exchange revenues with its value adding processes whilst remaining a leading and technologically superior manufacturer in its chosen segment.