Haycarb reports 3Q turnover at Rs. 8 bln, PBT at Rs. 601 mln

    Haycarb PLC, the Sri Lankan multinational of the Hayleys Group, last week reported a turnover of Rs. 8 billion and profit before tax of Rs. 601 million for the 9 months ending 31st December 2014. The profit after tax stood at Rs. 508 million. Haycarb PLC Managing Director, Rajitha Kariyawasan said in a statement to the media that, “continuation of the high raw material prices in Sri Lanka and India and the inability to pass on the resultant cost increases to its customers impacted the profitability of the Sri Lanka operations significantly”. He explained that the requirement to increase product prices is evaluated and balanced against the need to retain key customer accounts and strategies formulated to capture new markets to grow the top line. The depreciation of the currencies in some of Haycarb’s key markets, notably the depreciation of the Euro, Australian Dollar and Japanese Yen resulted in exertion of yet more pressure on product pricing. The challenges on cost increases were offset to some degree from cost reductions achieved through lean initiatives that helped reduce energy costs in manufacturing operations and increase productivity. The Company is also looking into optimal usage and rebalancing of its manufacturing capacity along with restructuring measures in the supply chain to reduce costs in the medium term. Haycarb continues to invest in development and commercialization of specialized value added products, market expansion and brand presence. According to the statement, Mr. Kariyawasan also said, “The industry outlook remains strong given the increasing demand for purification solutions globally. Haycarb is a strong and a leading player renowned for its product and technical excellence backed by a formidable supply chain and marketing network. We remain confident of the medium and long term outlook.”