The Sri Lankan multinational Haycarb PLC reported a turnover of Rs. 2.4 billion and profit before tax of Rs. 170 million for Q1 2014/15. The profit after tax stood at Rs. 143 million.

Haycarb PLC Managing Director, Mr. Rajitha Kariyawasan commenting on the results of Q1 stated that “Sri Lanka operations faced significant challenges during the first quarter of the year, as raw material prices increased approximately 20% compared to the previous year. The situation was compounded by the scarcity of charcoal in India where Haycarb Sri Lanka procures a large portion of its requirements. Similarly the charcoal prices in Indonesia rose significantly close to 20% followed by a lesser impact in Thailand where the charcoal prices impacted adversely in the previous financial year”.

He noted that the time lag in passing this cost to customers, and the inability to pass the raw material price increases to customers at a reasonable level impacted the Group’s GP margins significantly in Q1. The Company balances the need to improve margins whilst retaining key customer accounts and driving top line growth in a back drop of severe competition from established and new players in the market.

The Company is looking into rationalizing its product portfolio selecting key products and segments that meets its minimum return threshold. Significant efforts and programs are in place through cost control and Lean initiatives to take costs out of the total supply chain.

Mr. Kariyawasan further noted that he is pleased to announce the commencement of commercial supplies from the new manufacturing facility, PT Haycarb Palu Mitra, in Indonesia.

He noted that in spite of challenges in the short-term, Haycarb remains confident of its medium to long term outlook. Key value adding new carbon products and new water systems projects by its subsidiary, Puritas (Pvt) Ltd, have made considerable progress that can positively impact the top and bottom line.

Haycarb is the pioneer manufacturer of coconut shell activated carbon in any coconut producing country with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the USA, UK and Australia, contributing net foreign exchange revenues with its value adding processes whilst remaining a leading and technologically superior manufacturer in its chosen segment.

The Board of Directors of Haycarb PLC comprises of Messrs Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Arjun Senaratna, Sarath Ganegoda, Dhammika Perera, Mrs. Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana and Sujeewa Rajapakse.