Piramal Glass says sales fell in FY 2013/14
View(s):Piramal Glass Ceylon PLC (PGC) has reported Rs.835 million in profits for the financial year 2013-14 but the company had dipped by 5 per cent in terms of growth as sales had experienced a slide in the last year compared to 2012, a media release issued by the company stated.
It was stated that the company’s turnover was at Rs.5,220 million and a Profit After Tax of Rs.835 million including the profit from the sale of the Rathmalana land for Rs. 652 million.
FY 2014 closed with a total turnover of Rs. 5,220 million as against Rs. 5,501 million for FY 2013 which reflected de-growth of 5 per cent, the release stated.
Annual turnover was given as Rs. 3,774 million from the domestic market and Rs.1446 million from the export market. These figures reflect a 6 per cent growth in the export market and 9 per cent de-growth in the domestic market as against that of the previous year, it was stated.
Of the total volume of the company’s sale, the major portion was dominated by the domestic sale. This percentage of domestic sales dropped from 76 per cent to 68 per cent which was one of the major contributors towards the reduction of the company’s sale and profitability. This was reflected in the dip in the sale of bottles to the Beer and the Beverages segment which amounted to a drop of almost 10,000 tonnes of glass bottles. The other segments too remained static during the year, the release noted.
Due to the shift from eco- friendly bottles to other forms of packaging, the company opted to either reduce or shift its market base to exports.
The export volumes bailed out the company with a growth of 28 per cent in the export volumes during the year as compared to the previous year. Yet these sales helped PGC to partly offset the decline in the domestic segment and ensure utilisation of capacity of the furnace which would have otherwise further increased the product cost, it was stated.
The above sales and production factors affected the profitability of the company drastically during the year. The profit from the operations was Rs. 184 million after tax as against Rs. 722 million in FY2013.