Haycarb PLC, a manufacturer of coconut shell based activated carbon, reported strong performance for the quarter ended December 31, 2018 (3Q19) as the company boosted its revenue through raising prices of its products, although it faced some stiff competition from India and Philippines, the largest coconut carbon producing countries in the region.
Haycarb, a unit of Hayleys group, recorded revenues of Rs.5.3 billion for the period under review up 41 percent year-on-year (YoY), as the company enjoyed the benefits of passing the higher raw material prices through higher sales prices of activated carbon during the first half of the year.
Sales of the group’s other value-added products also grew in tandem, Haycarb Managing Director, Rajitha Kariyawasan stated in an earnings release.
The company reported an operating profit of Rs.405.4 million compared to Rs.342.5 million YoY, an increase of 18.4 percent.
Earnings for the quarter stood at Rs.7.12 a share or Rs.211.4 million, up 31percent YoY.
The bottom line was somewhat supported by a substantial increase in finance income, which negated the spike in the finance cost.
Meanwhile, for the nine months ended December 31, 2018, Haycarb reported earnings of Rs.17.36 a share or Rs.515.8 million in total earnings, up 29 percent YoY.
This was on a top line of Rs.14.3 billion, up 31 percent YoY.
Haycarb PLC is the pioneer in manufacturing of coconut shell based activated carbon across the world through its marketing offices in USA,
UK and Australia.
The company has manufacturing facilities in Sri Lanka, Thailand and Indonesia.
Almost 80 percent of the company’s turnover is generated in Asia, USA and Europe and almost 50 percent of its activated carbon is used for water treatment, followed by gold recovery and air treatment.
Apart from the activated carbon, the group also offers purification solutions via its environmental engineering arm, Puritas Private Limited.
This segment has generated Rs.1.38 billion revenue during the nine months compared to Rs.580.9 million in the corresponding period of the previous year, the segmental information showed.
The activated carbon business generated Rs.18.9 billion in revenues, up from Rs.13.8 billion.
Meanwhile Haycarb said the availability of charcoal is improving in Sri Lanka, India and Indonesia due to improved coconut crop and as such the company has gradually passed on that benefit to the customers.
During the period, the company has successfully forged new customer relationships and accessed new market segments.
Meanwhile, in its commitments towards sustainability, the group has propagated the environmental-friendly charcoal pits under the ‘Haritha Angara’ scheme in Sri Lanka and the operation of environmental-friendly vertical charcoal kiln project in Thailand.
Hayleys PLC has 67.73 percent stake in Haycarb while the Employees’ Provident Fund has 4.77 percent of the company being its second largest shareholder.
Haycarb’s share was up 20 cents or 0.15 percent to Rs.130.20 at yesterday’s market close.