Haycarb reports substantial profits in first half '07-08

Solid performances by its overseas manufacturing subsidiaries and the profits generated by a strategic disposal of investments has enabled Haycarb PLC, the Hayleys Group's multinational activated carbon company to achieve a more than five fold increase in pre and post tax profits in the first half of 2007-08.

The company's profit before tax for the six months ending September 30th 2007 grew 445 per cent over the first half of the previous year to Rs 213.3 million, it said in a statement. Profit after tax for the period, at Rs 200 million reflected a growth of 472 per cent.

Turnover for the period reviewed increased by 23 per cent to Rs 2 billion indicating an overall improvement in operating conditions for the company.

Elaborating on these results, Haycarb Managing Director Ananda Hettiarachchy said the sale of investments during the quarter had contributed Rs 66 million to the results achieved."Even discounting this gain, the post tax profit growth achieved by the Haycarb Group is a noteworthy 284 per cent, and reflects the strong performance of all its manufacturing operations, especially those in Indonesia and Thailand," he said. The Group's improved performance was also reflected in its earnings per ordinary share, which increased from 65 cents as at September 30, 2006 to Rs 5.99 at the end of September 2007.

Haycarb was hit by raw material shortages due to a drop in domestic coconut production during much of 2005-06 and the high prices of charcoal, its main rawmaterial. The post-tsunami strength of the Rupee against the US Dollar also negatively impacted on its bottom line in that period.Haycarb is the pioneer manufacturer of activated carbon in any coconut producing country, and today is the world's largest coconut shell based activated carbon exporter and marketer.