Piramal Glass Ceylon Plc (PGC), a manufacturer of glass containers for food and beverages, pharmaceuticals, cosmetics and perfumery, has, the company says, reported its best quarter ever to date. Net …
Piramal Glass Ceylon Plc (PGC), a manufacturer of glass containers for food and beverages, pharmaceuticals, cosmetics and perfumery, has, the company says, reported its best quarter ever to date. Net sales for the quarter ending 31 December 2010 increased 28%, reaching LKR 1,166 million, while gross profits were up 38% to LKR 360 million and net profit for the period came to LKR 190 million. Sanjay Tiwari PGC“s CEO and executive director, announced PGC“s results, and said, “We“re proud to report the best ever quarter for PGC. This quarter has vindicated our investments and hard work. We have invested in some strategic initiatives in the last few years and put in a lot of effort in turning around PGC. We have improved our manufacturing efficiency and realigned our portfolio offerings. We have put a major onus on manufacturing excellence with a view to achieving Six Sigma and the Global implementation of SAP. As a result, we have achieved 84% production efficiency.” The third quarter was an exceptional one for the company, also thanks to the festive season, which played an important part with high domestic sales growing 35% from LKR 663 million to 898 million. Exports increased by 11% from LKR 244 million to LKR 269 million, while a significant volume growth of 9% was also seen for the quarter. According to Tiwari, the export market played a significant role during the quarter with sales mainly regarding the high realization, speciality segment, which contributed to better margins and an increased bottom line. The high realization segment made up 71% of the quarter“s export volume, which helped overall export realizations to increase more than 50% per ton, compared to the similar period of the previous year. Total revenue for the nine months ending 31 December 2010 increased 15% to LKR 3,061 million. Gross Profit [GP] ratio was up 32% compared to 27% during the similar period of the previous year. The company achieved a Gross Profit of LKR 972 million for the first nine months of the FY2011 compared to LKR 705 million during the same period of the previous year, crossing the LKR 400 million mark in Profit After Tax for the period, compared to a loss of LKR 89 million during the same period of the previous year. A combination of strong domestic and export sales for the first nine months of FY2011 saw PGC achieve LKR 2,308 million and LKR 753 million respectively in both markets. With regards to the speciality market, PGC saw outstanding export figures, with a tonnage of 7,567 and a value of LKR 539 million, thus proving its capability and intent in expanding its export offerings in niche markets. Production costs were reduced thanks to productivity improvements, and the company was able to produce 12% more than the similar period of the previous year. “We are indeed thrilled at the performance of Piramal Glass Ceylon and we are confident that the growing domestic markets coupled with that of niche exports, the company“s continuous strive for excellent performance, as well as the commitment and investment that we made in last few years have showed fruition,” said Chairman of Piramal Glass Ceylon Plc, Vijay Shah.