Dear Valued Shareholders, the year under review has seen a significant turnaround in the operaons and financial performance of the company despite extended tepid market condions. This has been possible due to better asset ulizaon, enrichment in product mix and cost opmizaon efforts besides gains recorded due to favourable exchange rate movements. Even after normalizing the profitability in comparison to the previous year where there was a large one me impairment loss provision, foreign exchange losses and tax charges, the current year reveals is a marked improvement in the operang margins.
Almost all the new assets added since 2011, notably the thick film line in Thailand and the thin film line in US are now running closer to opmum capacity. The Thick film line has been able to garner a stable customer base across several applicaons especially in photovoltaic module backsheet segment. Polyplex Europa, the subsidiary in Europe, connues to be profitable and perform sasfactorily.
Despite higher producon levels arising from the investments made in last few years, the topline of the Company remained almost flat at about THB 12 billion due to decline in selling prices arising from corresponding decline in raw material costs. The reported net profit stood at THB 1366 million as against a net loss of THB 123 million last year. The reported profit is after accounng for THB 326 million of Exchange gains.
While the supply overhang in the PET film industry persists, the Company remains financially strong and confident about the future of this industry. The geographically diversified presence of the Company along with the extensive product offering and wide spread customer base has helped the Company to increase sales and would help the Company to do so in the future as well. When markets become balanced, the Company should be able to improve its margins due to the strong base it has created over the years.
The Company’s balance sheet remains healthy and we would strive to look for opportunies of further profitable growth. An addional metallizer in the US and a second Blown PP line in Thailand are under implementaon. The funds raised from the rights offering last year in Thailand have been used to reduce the debt levels further. In line with the better profitability, the Board has proposed restarng the payment of dividend with a payout of 0.36 THB per share subject to approval of the shareholders.
The recycling plant which the Company had started a few years ago in Thailand contributes in reducing the impact of plasc waste on the environment. The Company remains committed and will connue its effort in finding sustainable soluon for rest of its waste as well as processed film waste. Apart from this, the Company regularly engages in community oriented programs across all its locaons.
On behalf of the Board, I would like to thank all the shareholders, business partners and the employees of the Company for their constant support and hard work without which we would not have been able to weather the ups and downs of business and look forward to similar support in the future as well.