Piramal Glass Ceylon reports fiscal Q3 net profits of 205M Sri Lankan rupees, record sales up 18% year-over-year to 1.37B rupees on high domestic demand for liquor, aerated water bottles, increased premium bottle exports

LOS ANGELES , January 31, 2012 () –

Piramal Glass Ceylon PLC (PGC) reported its results for the third quarter ending Dec. 31, including net profits of 205 million Sri Lankan rupees (US$1.8 million) and record sales of 1.37 billion rupees, an 18% increase from the previous-year period, due to increased domestic and export demand for its specialty glass containers, the Daily Financial Times reported on Jan. 31.

During the quarter, domestic sales increased by 18%, while exports were up by 17%, both compared to a year earlier. Turnover through the first nine months of 2011 was up 23% on the domestic market and 26% for exports.

The main influence on sales was a sharp upturn in domestic demand for bottles for aerated water and liquor, especially for beer, which resulted in the company’s operations running at full capacity.

To ensure long-term customer relationships, PGC had to import some standard bottles at a small margin, which diminished profits.

Export orders for premium bottles were a major contributor to increased earnings, leading the 26% growth in total exports through the first nine months compared to a year earlier, reported the Financial Times.

The company has successfully made inroads into niche bot tle segments of the market through its research and development of new colored bottles.

Production efficiency improvements over the first nine months of 2011 allowed the company to maintain the cost of bottles at a time when input costs were increasing, the Financial Times reported.

Gross profit as a percentage of sales fell to 29% from 31% a year earlier. The net profit during the nine-month period totaled 588 million rupees, which exceeded the previous year’s 12-month net profit of 579 million rupees.

PGC said that its strategy to provide full service to its domestic customers while boosting its export business through specialized liquor and beverage bottles is aimed at becoming “the most preferred specialty glass packaging solutions provider in Asia.”

Rising costs of financing and high prices for raw materials and energy are a concern to PGC, but the company said it is optimistic about the future trend because of growing domestic markets and export demand for its premium products.

The primary source of this article is the Daily Financial Times, Colombo, Sri Lanka, on Jan. 31, 2012.

 

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