ACME announces turnaround performance for 3Q

Leading flexible packaging manufacturer ACME Printing and Packaging PLC recorded a group revenue of Rs.334 million for the quarter ended on December 31, 2023 (3Q23), which was a 49 percent increase from the corresponding period’s achievement of Rs.224 million. 

However, a gross profit of Rs.111 million, which was a 746 percent growth compared to the loss of Rs.17 million, was incurred during the same period last year. 
The profit before tax for the said period was Rs.29 million, a 138 percent increase compared to the loss of Rs.74 million during the corresponding period of last year. Prudent cost optimisation strategies adopted to improve the group’s gross profit margin, gross profit and working capital cycle in addition to the infuse of working capital through a rights issue are said to have resulted in improved operations.

ACME as a company achieved a turnover of Rs.420 million for the third quarter under review, a growth of 134 percent compared to the turnover of Rs.180 million recorded in the corresponding period of last year. In addition, mirroring the achievements of the group, the company further achieved a turnaround gross profit of Rs.70 million, a laudable transformation when compared to the breakeven in the same period last year. 
Analysing the nine-month period ending on December 31, 2022, the group achieved a revenue of Rs.841 million, a 0.1 percent marginal increase compared to the Rs.840 million achieved during the corresponding period of last financial year. 

The group concluded the period on a high note, with a net profit of Rs.54.5 million, when compared to the loss of Rs.226.5 million incurred during the corresponding period of last year. 
Similarly, as a company, ACME’s revenue for the nine-month period was Rs.882 million, a 28 percent increase compared to the Rs.687 million achieved last financial year. The net profit for the said period was Rs.58 million, compared to the net loss of Rs.65 million incurred in the corresponding period of the previous financial year. This remarkable achievement of generating a positive bottom line was achieved after a period of several years. 

Several cost optimisation strategies, which attributed to this remarkable transformation, was adopted by the new management during the period under review. As such, the group managed to keep the distribution and administrative expenses to a minimum and the cost of borrowing continued to increase significantly, due to the market liquidity scenarios in the country.  
ACME Printing and Packing PLC is a subsidiary of Lankem Ceylon PLC.