Haycarb records Rs.279mn net profit for 4Q

19 May 2015 06:09 am Views - 1398

The Hayleys group’s coconut shell-based activated carbon manufacturer, Haycarb PLC reported a net profit of Rs.279.4 million for the final quarter (4Q15) of FY15, up from Rs.236.1 million recorded in the previous year.

The earnings per share for the quarter improved to Rs.9.41 from RS.7.95.

However, the net profit for FY15 fell 12 percent YoY to Rs.695 million and the earnings per share weakened to Rs.23.39 from Rs.26.51.

Cost of sales, distribution and selling costs and administrative expenses rose sharply during both FY15 and 4Q15.

According to the company, the increase in price of its primary raw material, coconut shell charcoal, impacted the profitability and the company was unable to pass the higher costs to the consumers.

“The markets continued to be affected by the depressed gold mining industry and low-cost competition from countries such as the Philippines, Indonesia and India.

The depreciation of currencies in key markets in which we operate, notably in the second half of the year, contributed to the erosion of margins,” Haycarb PLC Managing Director Rajitha Kariyawasan said.

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 USA, UK and Australia.

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.

During the year, the company focused on expanding its supply chain network for coconut charcoal in Sri Lanka and Indonesia, consequently reducing dependency on India.

Kariyawasan said that performances by the operations in Thailand and in Indonesia contributed significantly to the overall group performance.