Bangkok--15 Feb--Master Mind Communications
Company’s management is of the opinion that the extreme end of the down trend in the PET film industry is over and believes that current oversupply situation in market will gradually improve by the end of this year, indicating a healthy growth rate in the industry . Total consolidated sales for the nine month period ending 31 Dec, 2006 amounted to 3,417.7 Million Baht, generating a net profit of 220.94 Million Baht. Future plans to mitigate risk include: increase product range by creating value added products, capture new markets, and protect gross profit margins through improving cost efficiency.
Mr. Manish Gupta, Director and General Manager of Polyplex (Thailand) Public Company Limited said he believes that the company has already experienced the lowest point of the cycle, which has subsequently been reflected in the continuously improving operating results, compared quarter on quarter. From a total revenue of 1,037.66 Million Baht in the first quarter of 2006-07 (April-June ’06), total revenues increased to 1,145.92 Million Baht in the second quarter (July-September ’06), and to 1,234.12 Million Baht in the third quarter (October-December ’06).
Net profits of both PTL and its subsidiaries together have also continued to increase over the span of the previous three quarters, increasing from 30.94 Million Baht in Q-1 to 75.39 Million Baht in Q-2 and finally to 114.60 Million Baht in Q-3 .It is noticeable that, although total revenue didn’t have astounding increases, total profit did, due to an increase in the gross profit margin resulting from declined raw material prices.
“We always reiterated to our valued investors about the benefits of the company’s strategic investment plans and the same can be evaluated with the operating results of the company in the recent past as also through a comparison with its competitors” said Mr. Manish Gupta.
Mr. Gupta also elaborated on the effects of the business cycle, saying that the worst of it appears to be over. Last year, the industry witnessed a state of over supply, where the available capacity was more than the demand. The situation was compounded by a surge in input costs caused by crude oil prices reaching almost $ 75/barrel as also the steep decline in USD against THB. In the current year the demand situation is expected to improve gradually resulting in a better demand-supply balance by this year end.
The Director and General Manager of Polyplex (Thailand) Public Company Limited also said that the company, with the longer industry experience and strategic positioning has emerged as a major player in the PET film industry, both in Thailand and around the world by increasing its product range, especially in value-added products. On the cost efficiency front, Polyplex has switched to natural gas from Fuel Oil in Jan 2007, which will help reduce costs and also be more environment friendly.
PTL plans to set up an Extrusion Coating plant at Thailand (expected completion in Q4 -2007) , as well as set up an additional PET Thin Film line in its subsidiary in Turkey (expected completion in Q2-2008) , where their original line has already reached 100% utilization rate within four quarters of commencement of production in December 2005.
Polyplex’s important strategies this year include further investments in value-added products, such as Extrusion Coating and in-house product development to expand the product range with a view to have better protection against cyclical movements in margins. At the same time, Polyplex plans to focus on building strategic relationships with key customers, attain higher market penetration in certain key markets and look for opportunities to grow further.
For more information, please contact:
สุนิสา ทองวรรณ โทรศัพท์ 084-105-7878 , 0-2643-1191-2
อีเมล์ [email protected]