Sri Lanka’s Haycarb June net down despite higher sales

ECONOMYNEXT – Sri Lanka’s coconut shell-based activated carbon manufacturer Haycarb said net profit fell six percent to 101 million rupees in the June 2018 quarter from a year ago.

Sales of the firm, part of the Hayleys group, rose 31% to 4.3 billion rupees, according to interim results filed with the stock exchange.

Earnings per share of the company, which has factories in Sri Lanka, Thailand and Indonesia, were Rs3.40. The stock was last traded at Rs127.

Haycarb Managing Director Rajitha Kariyawasan said that initiatives to extend market reach and the value added portfolio contributed to the noteworthy growth in turnover. Haycarb has marketing offices in the USA, UK and Australia.

But continuing shortages and escalation of charcoal cost in Sri Lanka and India negatively impacted the profitability at both the company and group levels, a statement said.

"Even though coconut crop and charcoal supply chain dynamics stabilised in Indonesia, shortages in coconut shell based charcoal supplies are expected to continue in Sri Lanka, India and Thailand in the short term.

"In this backdrop the company is continuing to focus on the procurement strategy that emphasizes on retention of existing suppliers, broad basing the supply network and supporting low-cost environmental friendly charcoaling methods." (COLOMBO, 09 August, 2018)

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