Polyplex (Thailand) Plc (PTL) recorded a 64% YoY increase in normalized net profit for its financial year ended March 2021, as demand for its core business polyethylene terephthalate (PET) film witnessed steady and strong growth throughout the year. Other key factors bolstering profitability are the continued focus on enhancing the specialty product portfolio, cost management and the full ramp up of the new plant in Indonesia.
The Company earned 15,144 million baht in sales for the fiscal year 2020/21, a growth of 8% YoY, compared to 14,051 million baht of the previous year.
PTL's Board of Directors has approved a final dividend payment of 0.46 baht per share, or a total amount of 414 million baht. The record date for dividend entitlement is 10th August and the payment date is 26th August 2021.
The demand outlook for thin PET film is healthy with an annual growth rate projected at CAGR of 5-7% p.a, which is mostly in line with growth in capacity at a CAGR of 6-8% p.a. Moreover, new capacity expansions in the pipeline in next 2-3 years are mostly in India and China, both of which have a robust domestic consumption.
“The Company strongly believes that its strategic positioning in the key geographies has proved to be beneficial in the past and will continue to be a big plus point going forward as well, particularly in the current times of Global supply chain disruptions and other logistic challenges the world is grappling with” said Mr. Amit Prakash, the Managing Director.
PTL's strong financial performance manifests the company's strong position as the world's sixth largest PET film producer, supported by its reputation as a reliable and preferred supplier of consistent quality products with strong global customer base as well as its focus on R&D and innovation.
“The key highlight in the coming year would be the Company’s new investment in a BOPP Film line, which is slated to start up in the Q2 of the financial year. The Company remains confident of being able to be ramp up the new line in a short span of time, thanks to the strong demand in the local market as well as the synergies with existing customer base of BOPET films, as we aim to be a one stop supplier of choice, to meet their entire flexible packaging needs” said Mr. Prakash.
PTL’s upcoming Brownfield BOPET film line expansion in the US is well on track and expected to start-up in Q1 of 2023-24, paving the way for Polyplex to further expand its market share and strengthen its positioning as a preferred supplier in the American continent, which is currently dependent on Imports to meet the increasing demand for BOPET films.