PGP Glass records lower revenues in December quarter

PGP Glass Ceylon PLC reported lower revenues and profits in the three months ended in December 2023, in a sign that the demand for its glass containers is still to pick up to its former high levels  both at home and abroad.
Sri Lanka’s sole glass container manufacturer reported revenues of Rs.4.51 billion for the quarter that ended in December 2023, the company’s third fiscal quarter, registering a decline of 22.9 percent from the same period a year ago.
The data available in the interim report isn’t sufficient to see if the demand softening was coming from either its foreign clients or the local ones or both.

Exports saw some softening in the last one year or so due to the slowdown in global demand due to higher inflation and higher interest rates, the latter of which was brought into rein in such demand which was thought to have been behind the inflation.
The liquor industry which the company supplies to many has seen a sharp slowdown due to exponential prices in alcoholic beverages.

However, the sales saw an improvement by 22.0 percent from the September quarter, perhaps in a sign that the sales slump was behind the company. But, the December quarter may have also gotten some bump up from the seasonal demand.
Meanwhile, the operating profits declined by 20.2 percent to Rs.1.14 billion.

Due to lesser finance cost and the tax expense, the company saw its earnings slipping by only 3.8 percent to Rs.852.6 million or 90 cents a share in the October – December quarter, compared to 93 cents a share or Rs.886.1 million in the year earlier period.
For the nine months, the company reported earnings of Rs.2.14 a share or Rs.2.03 billion compared to Rs.2.39 a share or Rs.2.27 billion.
The company’s share ended 60 cents or 2.25 percent lower at Rs.26.10 on Friday.