PGP Glass Ceylon PLC reported its results for the half year ended September 30, 21 (H1) posting a revenue of Rs 4,140 million as against Rs 3,560 million of the corresponding period in the previous year reflecting a growth of 16% with operating profit increased from Rs 425 million (12%) to Rs 814 million (20% ).
The Profit After Tax for the H1 grew from Rs. 316 million to Rs. 543 million. The revenue for the 2nd Quarter remain flat at Rs 2,264 million as against Rs 2,230 million during the similar period 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 August 20 , 2021 & global supply chain disruptions impacting the container availability & rising ocean freight costs in export market.
The domestic sales during the quarter was at Rs. 1,577 million as against Rs. 1,560 million of the previous year similar period. The export revenue showed a marginal growth of 3% as compared to previous year with a revenue of Rs. 687 million as against Rs. 670 million of previous year.
The gross margin for the quarter increased from 24% to 26% as compared to the similar period of the previous year & the PBT stands at Rs. 447 million as against Rs. 314 million of the previous year similar quarter. Due to the current global supply chain disruption, manufacturing
industries across the globe have witnessed steep rise in input costs as well as energy costs.
“ We are also facing a similar situation in the latter half of Q2, with raw materials, packaging materials and LPG prices at all-time high and forecasted to further rise in coming days.
To mitigate the unprecedented cost increase, the company plans to optimize the operations with Digital & Analytic tools and continue focus on premium products with decoration for international customers, thereby partially reducing the cost implication on the domestic market.
According to Sanjay Jain, ED & COO, “The Company is aggressively exploring new international markets for its products in the specialty 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 November 10, 2021. Subsequent to the shareholder approval obtained at the AGM & approvals of the regulatory authorities, the company changed its name from Piramal Glass
Ceylon PLC to “PGP Glass Ceylon PLC” with effect from September 1, 2021. PGP Glass Ceylon (formerly, Piramal Glass Ceylon PLC) is the only glass bottle manufacturing company in Sri Lanka and has been in operation in Sri Lanka for the last 65 years.
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