PTL profit soars up 45% YoY in Q3 2020/21

Polyplex (Thailand) Plc (PTL) recorded a strong performance in the third quarter of its fiscal year 2020/2021 (Oct – Dec 2020) with net profits soaring 45% and top-line revenue increasing 15% over the corresponding quarter of the previous year.

The impressive performance came as the result of continued high global demand for PTL’s PET films which are used mainly in food and non-food packaging applications for health and hygiene purposes and a host of other Industrial applications.

Normalized Net profits for this quarter was 708 million baht, representing a 45% increase from the same quarter in the previous year while total sales revenue in this quarter was recorded at 3,752 million baht, up 15% year-on-year.

SET-listed PTL is an integral part of Polyplex Corporation Ltd which is the world's sixth largest producer of PET Thin films. The group is the largest PET Thin films producer in Southeast Asia with state-of-the-art manufacturing facilities in Thailand and Indonesia.

Priding itself as an innovative partner to customers and a cost-effective producer with all types of film substrates including a wide range of specialty products, Polyplex is committed to sustainable growth. The group also operates large PET and other plastic films’ capacities in India, Turkey and USA and is also expanding its manufacturing capacities in the US and Indonesia.

According to Managing Director Amit Prakash, the Industry has historically seen a very stable growth of 5-7% p.a. in Global demand for PET Thin films, which are used largely in flexible packaging applications for consumers staples such as food and health and hygiene products. The demand growth in 2020 was further boosted by growing awareness among consumers around the world, for better health and hygiene standards

The demand for PET Thin films is expected to remain strong in the first quarter of 2021 and well into the rest of this year. Mr. Amit Prakash said the Company is seeing a revival in the Industrial film segments as well and the global demand for PET films both in flexible packaging and industrial usage is likely to remain strong into the medium-term future. Advent and surging growth in electronic and electrical segments will support the same in long term. Although there are significant capacity additions expected over next 2-3 years, the Company expects them to be well absorbed into the markets with short term and minimal impact on the margins, as and when each line starts up.