Tuesday 8 November 2016

Sri Lanka’s Haycarb Sept quarter net profit up 20-pct

ECONOMYNEXT – Sri Lankan coconut shell-based activated carbon manufacturer Haycarb said net profit for the September 2016 quarter rose 20 percent to Rs147 million from a year ago.

Group sales went up 16 percent to Rs3 billion over the same period, according to interim accounts filed with the stock exchange.

The firm, part of Hayleys Group, reported earnings per share of Rs4.94 for the latest quarter, compared with Rs4.12 the year before.

In the six months ending 30 September 2016, Haycarb’s earnings per share were Rs9.99, with net profit up 7 percent to Rs375 million from the previous year.

Haycarb Managing Director Rajitha Kariyawasan said the company’s initiatives to strengthen raw material supply chain networks in Sri Lanka and Thailand have made progress.

But the raw material supply chain in Indonesia faced setbacks due to adverse weather conditions and increased exports of charcoal.

“While depressed conditions in the gold mining sector continue to impact profitability, the raw material situation in Indonesia will be an additional challenge the company will have to contend with in the short term,” he said in a statement.

“On a positive note,” he added, “successes in marketing and new product development initiatives resulting in the acquisition of new customer accounts and product segments increased the market reach of the company, which is reflected in the improved top and bottom line.

“This was complemented by lean initiatives that streamlined processes which brought in cost efficiencies and productivity improvements.”

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