PGP Glass delivers strong December performance

PGP Glass Ceylon PLC has delivered strong top and bottomline performances for the December 2022 quarter (3Q23) as the company appears to be having some solid order book from both its foreign and local clientele, while the weaker rupee may have also helped bolster its performance in rupee terms.  

Sri Lanka’s sole glass container manufacturer increased revenue by 100.7 percent in the December quarter to Rs.5.86 billion from the same period in 2021 continuing its momentum of strong revenue growth.  The company produces glass containers for multiple industries including food, liquor, pharmaceuticals, agrochemicals and soft drinks and has an expansive international business through exports. As the company was coming out of the pandemic it was eager to expand its international market footprint to minimise the demand fluctuation that could come from possible disruptions to any one or few markets. 

The published financial data wasn’t sufficient to assess what section of revenue was brought in by exports and to what extent the sharp depreciation of the rupee against the dollar helped the company to boost its topline as the financial accounts didn’t provide a breakdown.
However, the continuous momentum seen in the company’s revenue quarter-over-quarter provides evidence that the B2B clients who depend on PGP are still holding up despite the weaknesses seen in both international and local market conditions. 

PGP reported earnings of 93 cents a share or Rs.886.1 million for the quarter under review compared to 56 cents a share or Rs.534.8 million a year ago, logging 65.7 percent jump.  The direct costs surged 93.3 percent to Rs.4.04 billion. 
Meanwhile, for the nine months to December 2022, the company reported earnings of Rs.2.39 a share or Rs.2.27 billion compared earnings of Rs.1.13 a share or Rs.1.08 billion in the same period in 2021. 
India’s PGP Glass Private Limited controls 78.65 percent stake in PGP Glass Ceylon while the Employees’ Provident Fund has 9.51 percent being the second largest shareholder in the company as of December end.