Panic buying of food jars boosts Piramal Glass 2Q

Sri Lanka’s only glass bottle manufacturer Piramal Glass Ceylon PLC said the performance of July-September quarter (2Q21) was boosted by domestic market sales driven by COVID-19 fears.

For the quarter under review, the company reported higher earnings of 38 cents a share or Rs.360 million compared to earnings of 8 cents or Rs.73.6 million reported for the corresponding period of the previous year.
Revenue for the quarter also rose to Rs.2.2 billion from Rs.1.94 billion a year ago. Piramal Glass share yesterday closed at Rs.7.00, up 40% or Rs.2.00. “The domestic market witnessed a growth of 20 percent with sales of Rs.1, 560 million as against previous year’s similar period revenue of Rs.1, 291 million. 

The demand for packaged food witnessed a steep rise due to panic buying by households resulting to higher sales of food jars in the domestic segment during the period under review. 

The demand for pharmaceutical & agro industries also showed a healthy upward trend,” Piramal Glass said in an earnings release. 

However, the company said the beverage market saw a setback with restrictions placed on social and festive gatherings.

The company said after the lockdowns its operations began with 25 percent capacity producing glass containers for essential commodities for food and pharmaceutical customers. 

“The operations were back to normal only by mid-May leading to a setback in 1Q,” the earnings release said adding that the demand started improving in 2Q21. Meanwhile, the company’s export sales grew marginally during the quarter under review with export earnings of Rs.670 million against Rs.651 million a year ago.

During 2Q21, the company said it made inroads into new markets such as UK, Mexico, Colombia and Netherlands with food jars and high-end liquor bottles. 

“We are hopeful to sustain and further improve the performance, as there is a healthy pipeline for new products and new customers in the international markets. Even the demand from domestic customers remains strong,” Piramal Glass Ceylon Executive Director/COO Sanjay Jain said.  India’s Piramal Group owns 56.45 percent of the issued shares of Piramal Glass Ceylon.

According to multiple Indian news reports, Piramal Group has begun making offers to sell its glass business, which will include the Sri Lankan operations under Piramal Glass Ceylon PLC.