Sri Lankaâ€™s Haycarb Sept net profit up 56-pct
ECONOMYNEXT – Sri Lankan coconut shell-based activated carbon maker Haycarb said net profit rose 56 percent to 203 million rupees in the September 2018 quarter from a year ago.
Quarterly earnings per share were 6.84 rupees, according to interim accounts filed with the stock exchange.
The share was last traded at 128 rupees.
Sales rose 22 percent to 4.7 billion rupees during the period.
EPS for the six months to September 2018 were 10.24 rupees with net profit up 28 percent to 304 million rupees and sales up 26 percent to almost nine billion rupees.
Haycarb Managing Director Rajitha Kariyawasan said sales grew with an increase in prices in response to the sharp increases in raw material costs.
“As the shortage and cost escalation of raw material, coconut charcoal, continued during the first half of the year in most of the supply locations, Haycarb focussed on its lean platform,” a statement said.
This targeted cost saving initiatives and process improvements to minimise price escalations to customers while protecting profitability of the group, which has factories in Sri Lanka, Thailand and Indonesia.
“Considerable success achieved from product development efforts to expand its value added product portfolio strongly contributed to the overall business performance,” the statement said.
“Though we are expecting improved coconut crop and charcoal availability in most of our locations in the 2019 coconut season, the company is expecting a challenging period due to the increased competition from key coconut carbon producing countries,” Kariyawasan said.
Haycarb’s strategy of broad basing the raw material supply network and support for environment friendly charcoaling methods under its “Haritha Angara” initiative contributed to the improvement of sustainable charcoal supply, he said.
This will be continued as a core supply chain strategy of the group.
Kariyawasan noted that Puritas (Pvt.) Ltd., the environmental engineering business, is expected to continue to be a key contributor to the group’s performance during the second half of the year.
Its business in water and waste water treatment systems in Sri Lanka and in the region is projected to grow.