PGP Glass Ceylon 9-month profit after tax tops Rs.1bn

PGP Glass Ceylon director board (from left)  Sanjay Tiwari, C.T.S.B. Perera, Chairman Vijay Shah, R.M.S. Fernando and Sanjay Jain

PGP Glass Ceylon PLC reported its nine-month results as at December 31, 2021, with a turnover of Rs.7,064 million and profit after tax (PAT) of Rs.1,078 million, as against a turnover of Rs.5,961 million and PAT of Rs.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 February 11, 2022, for the period ending December 31, 2021.

The company reported a growth of 19 percent in overall revenue, with 55 percent growth in PAT. The domestic sales during the period grew by 19 percent, from Rs.4,176 million to Rs.4,976 million whilst the export revenue grew by 17 percent, from Rs.1,785 million to Rs.2,088 million.

During the quarter under review that ended on December 31, 2021 (3Q22), 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 percent . 

The sales to the domestic market grew by 26 percent, from Rs.1,679 million to Rs.2,123 million. In the export segment, the sales improved by 11 percent, 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 for the quarter was Rs.535 million, as against Rs.378 million of the corresponding quarter in the previous year, reflecting a growth of 42 percent.
The increased volumes helped gross margins for the quarter rise to 29 percent, as compared to 27 percent 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 is 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 ED and COO Sanjay Jain. 

“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 optimise 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.”