Tuesday September 25, 2018

Sri Lanka's Haycarb profits down on high coconut shell prices

Aug 06, 2017 18:44 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Activated carbon maker Haycarb Plc said high coconut shell prices in Sri Lanka, Thailand and Indonesia were shrinking profits, and talks were on with customers to raise prices.

There were shortfalls in supplies in Indonesia.

Profits in the June 2017 quarter fell 28 percent to 107 million rupees, interim accounts filed with the Colombo Stock Exchange showed.
The group reported earnings of 2.62 rupees per share for the quarter. The stock closed at 164.90 rupees this week.
Haycarb said revenues rose 12 percent to 3.29 billion rupees this week and expenses rose 21 percent to 2.65 billion rupees, but gross profit fell 15 percent to 641 million rupees.

Net finance income fell 70 percent to 133 million rupees, with finance costs falling from 89 million rupees to 59 million rupees.

"Shortages and price increases in coconut shell-based charcoal supplies are expected to continue through the current financial year in all the key coconut-producing countries in Asia," Managing Director Rajitha Kariyawasan said in a statement.

"The challenge in passing its full cost impact to end customers is a major concern to maintain activated carbon business’ expected margins through the year. The company is in the process of reviewing its prices to pass on a fair part of this impact to its customers after extensive discussions."

Kariyawasan said the group's environmental engineering arm Puritas (Pvt.) Ltd is growing with greater emphasis on environmental sustainability worldwide and was positive on the medium-to-long term outlook of its activated carbon and water treatment systems businesses.


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