PGP Glass achieves strong 1H results

Wednesday, 17 November 2021 00:00 - - {{hitsCtrl.values.hits}}

PGP Glass Ceylon PLC has reported revenue of Rs. 4,140 million in the first half of FY22, up by 16% from a year earlier, with operating profit increasing by 12% to Rs. 814 million.

The Profit After Tax for H1 grew from Rs. 316 million to Rs. 543 million.

The revenue for 2Q remained flat at Rs. 2,264 million as against Rs. 2,230 million during the same period in the previous year, in spite of the impact of loss of sales in the domestic market for over 40 days due to quarantine curfew imposed from 20 August, global supply chain disruptions impacting the container availability and rising ocean freight costs in the export market.

Domestic sales during the quarter were at Rs. 1,577 million as against Rs. 1,560 million for the same period the previous year.

Export revenue showed a marginal growth of 3% as compared to the previous year, with revenue of Rs. 687 million as against Rs. 670 million the previous year.

The gross margin for the quarter increased from 24% to 26% as compared to a similar period for the previous year, and the PBT amounted to Rs. 447 million as against Rs. 314 million for the same period in the previous year.

Due to the current global supply chain disruption, manufacturing industries across the globe have witnessed a steep rise in input costs as well as energy costs. A similar situation is being faced in the latter half of Q2, with raw materials, packaging materials and LPG prices at an all-time high and forecasted to further rise in the coming days.

To mitigate the unprecedented cost increase, the company plans to optimise operations with digital and analytics tools and continue to focus on premium products with decoration for international customers, thereby partially reducing the cost implication on the domestic market.

According to ED/COO Sanjay Jain: “The Company is aggressively exploring new international markets for its products in 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 due to the pandemic situation.”

The Board of Directors have declared an interim dividend of Rs. 0.25 per share at its meeting held on 10 November.

Subsequent to shareholder approval obtained at the AGM and the approvals of the regulatory authorities, the company changed its name from ‘Piramal Glass Ceylon PLC’ to ‘PGP Glass Ceylon PLC’ with effect from 1 September.