PGP Glass Ceylon reports over Rs.1 bn PAT

Nine-month results as at 31st December 2021

PGP Glass Ceylon PLC reported its nine-month results as at 31st December 2021, with a turnover of Lkr 7,064 Million and PAT (Profit After Tax) of 1,078 Million as against a turnover of Lkr 5,961 Million & PAT of Lkr 694 Million in the previous year similar period.

The Board of Directors have declared a second interim dividend of Rs 0.25 per share at its meeting held on 11th Feb 2022 for the period ending 31st Dec,2021.

The Company reported a growth of 19% in overall revenue with 55% growth in PAT. The domestic sales during the period grew by 19% from Rs 4,176 Million to 4,976 Million whilst Export Revenue grew by 17% from Rs 1,785 Million to 2,088 Million.

During the quarter (Q3) under review, the company achieved a revenue of Rs. 2,923 Million as against Rs. 2,401 Million in the corresponding period of the previous year, reflecting a growth of 22% . The sales to the domestic market grew by 26% from Rs. 1,679 Million to Rs. 2,123 Million. In the export segment the sales improved by 11% from Rs.722 Million to Rs. 800 Million. Amidst the challenging global scenario of higher freight costs and restricted vessel options, the company was able to recover part of the deferred export sale of the first half of this year. Also during the quarter, the company launched new products in markets of Mexico, Nepal and Mauritius.

The profit after tax of for the quarter was Lkr 535 Million as against Lkr 378 Million of the corresponding quarter in the previous year reflecting a growth of 42%..

The increased volumes helped gross margins for the quarter rise to 29% as compared to 27% during the similar period of the previous year.

Due to the current global supply chain disruption and rising energy prices, manufacturing industries across the globe have witnessed a steep rise in input costs as well as energy costs. “We are also facing similar situations, with raw materials, packaging materials and energy prices at an all-time high and forecasted to further rise in coming days. The recent increase in Furnace Oil and Diesel prices are adding pressure on the cost of manufacturing. With higher freight costs and unprecedented increases in input costs, our products are getting less competitive in global markets”, said Sanjay Jain, ED & COO, of the Company. “The Company is aggressively exploring new international markets for its products in the premium speciality liquor segment. The strategy to innovate in new product design and development, with increased global footprint has helped the Company effectively mitigate demand fluctuations in its existing markets. To mitigate the current cost increase, the company plans to optimize the operations with digital and analytics tools and continue its focus on premium products with decoration for international customers, thereby partially reducing the cost implication on the domestic market”.