Sri Lanka’s Haycarb net down 15-pct in March

ECONOMYNEXT – Sri Lanka-based Haycarb Plc, an activated carbon maker thatalso has operations in East Asia said profits fell 9.4 percent to Rs253 million in the March 2016 quarter from a year earlier amid competition and raw material disruptions.

The group reported earnings of Rs8.52 per share for the quarter. In the year to March 2016, the group reported earnings of Rs22.93 per share on total profits of Rs681 million, which were down 2 percent.

In the March quarter, revenue fell 15 percent to Rs3.3 billion, cost of sales dropped 7.7 percent to Rs2.5 billion and gross profit decreased 32 percent to Rs818 million.

Administration expenses also fell to Rs403 million from Rs559 million, and finance expenses were down from Rs127 million to Rs9 million.

Haycarb Managing Director Rajitha Kariyawasan said the firm battled a slowdown in gold mining; low-cost competition from India, Indonesia and the Philippines; and a shortfall in charcoal in Thailand during the year.

Marketing teams in the U.S., Europe, Australia, Thailand and Indonesia were restructured.

Commercialization of some value-added carbon products had brought better margins. Energy and cost savings measures were also implemented.

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