PGP Glass Ceylon reports higher March profits from lower costs, better sales

PGP Glass Ceylon PLC reported a robust bottom-line performance for the three months ended in March 2025, in a reflection of the strength in the industrial sector activity across a wide spectrum of sectors and also from the lower costs, which helped higher margins.

The company reported a topline of Rs.5.66 billion for the January-March period, the company’s fourth fiscal quarter, up by a modest 2.4 percent from the same period last year.

PGP is Sri Lanka’s sole glass container manufacturer for myriad industries, from food, beverages, liquor, pharmaceutical, agro chemicals to soft drinks.

The company also generates part of its sales from exports but the breakdown between the domestic and foreign sales isn’t available as part of the interim report for March.

What was notable was the sharp expansion in the gross margin of the company to 40.5 percent, from 28.7 percent a year ago.

This was made possible from the cost of sales, which fell by 14.5 percent from the same period last year.

The operating profit also rose by a sharp 68.8 percent to Rs.1.96 billion, as administrative expenses fell sharply to Rs.193.89 million, from Rs.342.69 million in the same period in 2024.

The selling and distribution expenses rose somewhat to Rs.149.67 million, from Rs.108.55 million a year ago.

The finance cost was sharply down from Rs.14.37 million to Rs.775,000 and the finance income rose sharply from Rs.717,000 to Rs.31.02 million. The latter was up because the cash and short-term deposits were up from just Rs.86.63 million to Rs.2.89 billion by end-March 2025.

Against this backdrop, the company reported earnings of Rs.1.58 billion or Rs.1.66 a share for the three months, up from Rs.905.86 million or 95 cents a share. For the full year, the company reported earnings of Rs.4.16 billion or Rs.4.38 a share, compared to Rs.2.94 billion or Rs.3.09 a share.

The company’s share ended 30 cents or 0.74 percent down at Rs.40.20.

The company also declared a final dividend of Rs.2.26 a share.

PGP Glass Private Limited has a 78.65 percent stake in PGP Glass Ceylon PLC and the Employees’ Provident Fund held a 9.51 percent stake in the company, being its second largest shareholder by March 31, 2025.