The year gone by was undoubtedly an exceptional one, with the Covid-19 pandemic affecting normal life for extended periods across the globe. At Polyplex, it became our responsibility and highest priority to ensure the health of our employees while securing our business operations. Despite the various challenges posed by this event including global supply chain disruptions, the Company managed to deliver improved results.
The Company’s geographically diversified manufacturing and distribution operations, along with its broadbased product portfolio with an increasing share of specialty products, has proven yet again, to be one of its greatest assets, which has not only helped us navigate these difficult times but also enabled the Company to capitalize on the right opportunities. The new Brownfield BOPET film line investment in the USA will help pave the way for Polyplex to consolidate and strengthen its position in North America.
Sales Volumes grew by 17% YoY due to the additional volumes from the new capacity at Indonesia, while Sales Revenue grew to Baht 15.1 Billion, a lower increase of 8% YoY, due to decline in selling prices, in line with the fall in raw material prices. Net profits (after adjusting for the foreign exchange gains) stood at Baht 2.96 Billion, a sharp increase of 64% over previous year.
The coming financial year would see the startup of BOPP Film line in Indonesia, which is slated for Q2. The Company remains confident of being able to be ramp up the new line in a short span of time like the PET Film line, thanks to the strong demand in the local market as well as a common customer base for BOPET & BOPP films. The new investment, along with the proposed expansion in the USA and several other smaller projects in Turkey and Thailand, focused on improving the specialty product portfolio will give a boost to the Company’s sales and earnings over the next 2-3 years.
Innovation has been one of our key strengths and differentiators for Polyplex. We have been focusing on the sustainability and circular economy for a long time and ahead of any regulatory developments. The expansion underway at Ecoblue, for recycling post-consumer PET and Polyolefin waste and the investments in chemical recycling capability at Turkey and Thailand demonstrate the Company’s continued commitment to Sustainability & Innovation besides Growth.
Keeping in mind the resource requirements to consider any further growth opportunities, the Board has proposed a final dividend of 0.46 THB per share subject to approval of the shareholders. Taken along with the interim dividend of 0.54 THB per share, the total payout for the year is 1.00 THB per share, which is about 30% of the normalized net profit of the company.
The robust and resilient nature of the industry has been re-affirmed by the fact that there was no overall adverse impact of the Covid-19 global pandemic on demand. We continue to remain confident of the long-term health and sustainability of the industry due to sustained growth in demand together with continuing innovations and advent of new and diverse applications consistently.
On behalf of the Board, I would like to thank all the shareholders, business partners and the employees of the Company for their unwavering faith in the Company and its long-term strategy. Your support has been the foundation for our accomplishments, and we look forward to your continued encouragement and engagement in the years to come.