Haycarb delivers solid 4Q as purifying products see increased demand

Haycarb PLC, the manufacturer of activated carbon from coconut shells, generated higher revenues and profits for the three months ended on March 31, 2020 (4Q21), on higher demand for its purifying products, as the company expanded market share. 

The Hayleys group’s largest export income-generating entity next to Dipped Products reported revenues of Rs.6.66 billion for the quarter under review, up 27 percent from the same period last year, as people and industries around the world increased the use of activated carbon as a key intermediate product in their supply chains as an effective purifier. Haycarb, just like the Hayleys group’s other subsidiary Dipped Products, was finely placed to benefit from the circumstances created by the pandemic, with more focus on health protection and hygiene. Haycarb Managing Director Rajitha Kariyawasan said they made strategic investments in safety stocks of charcoal so that they could seamlessly meet demand, expanding its market share. Their value-added products made using activated carbon also have seen increased demand during the period.

Collecting of disposed coconut shells have remained a significant bottleneck faced by Haycarb and the others who make activated carbon from coconut shells. The company has manufacturing facilities in Sri Lanka, Thailand and Indonesia, supported by marketing offices in the USA, UK and Australia. The company’s energy storage carbon range has also shown a significant growth in revenue during the year under review.  

The company also provides water purification solutions in Sri Lanka as well as in the regional markets, as a complementary business, under its engineering subsidiary Puritas (Pvt.) Limited. 

While Haycarb continued to confront challenges in both local and overseas markets for projects, it has secured significant water and waste water treatment projects in Sri Lanka under the Water Supply and Sanitation Improvement Projects (WASSIP initiative), under the Water Supply Ministry and the Climate Resilient Integrated Water Management Projects funded by the UNDP. 

For the January-March quarter, Haycarb reported earnings of Rs.2.15 a share or Rs.639.5 million, compared to earnings of Rs.1.56 a share or Rs.462.8 million in the same period in 2020. 

For the full year ended on March 31, 2021, the company reported earnings of Rs.10.25 a share or Rs.3.0 billion, compared to earnings of Rs.5.25 a share or Rs.1.56 billion in the previous financial year. The company generated an annual revenue of Rs.25.5 billion, up 12 percent. 

Besides strong sales, the earnings were also supported by the lower finance cost, which in fact got fully offset by the corresponding finance income, recording a net finance income. 

Hayleys PLC retains a 67.73 percent stake in Haycarb PLC while the Employees’ Provident Fund has a 4.74 percent stake, being the company’s second largest shareholder.