This report compares the quarterly interim financial performance of Ex-Pack Corrugated Cartons PLC as of September 30, 2024, with the previous annual report for FY 2023/24. The analysis highlights financial performance in the context of the company’s vision, mission, and strategic objectives, showcasing its commitment to sustainable growth and operational excellence.
Company Vision and Mission
Vision: "To be the
most preferred corrugated cartons supplier in Sri Lanka."
Mission: "To lead the way in corrugated cartons manufacturing and
add value to stakeholders through operational excellence."
Ex-Pack remains focused on maintaining its leadership position in the industry by driving operational efficiency, sustainability, and innovative solutions tailored to customer needs.
Financial Performance Summary
|
Financial Metric |
Q2 2024 |
FY 2023/24 |
YoY Change (%) |
|
Total Revenue |
LKR 4.85 B |
LKR 9.87 B |
-27% |
|
Gross Profit |
LKR 1.06 B |
LKR 2.15 B |
-51% |
|
Net Profit |
LKR 261 M |
LKR 580 M |
-59% |
|
Total Assets |
LKR 8.04 B |
LKR 6.74 B |
+20% |
|
Total Liabilities |
LKR 3.93 B |
LKR 3.56 B |
+10% |
|
Earnings Per Share (EPS) |
LKR 0.78 |
LKR 1.74 |
-55% |
|
Net Assets Per Share |
LKR 10.32 |
LKR 9.54 |
+8% |
Key Findings and Strategic Implications
1. Revenue and Profitability
- Performance: Revenue decreased by 27% YoY, driven by currency fluctuations and rising material costs. Net profit fell 59% as cost pressures outpaced revenue growth.
- Strategic Alignment: Despite short-term declines, investments in technology and production capacity align with the company’s mission of operational excellence and long-term sustainability.
2. Operational Costs and Efficiency
- Performance: Gross profit margin dropped from 26% to 22% due to higher material and operational costs. Administrative expenses rose 18%, reflecting workforce expansion and training initiatives.
- Forecast: Ex-Pack anticipates improved cost management as investments in R&D and technology start yielding efficiencies.
3. Cash Flow and Financing Activities
- Performance: Operating cash flow declined by 15% to LKR 520 million. New loans were raised to support facility expansions and machinery upgrades.
- Outlook: Investments in infrastructure are expected to enhance efficiency, stabilize financing needs, and support long-term growth.
4. Asset Growth and Liabilities
- Performance: Total assets grew 20%, driven by investments in property, plant, and equipment. Liabilities rose 10% due to financing for expansion projects.
- Implications: These changes align with Ex-Pack’s forecast to meet future demand and reinforce its leadership in sustainable packaging solutions.
5. Sustainability and Innovation Initiatives
- Performance: The company’s sustainability initiatives include using FSC-certified materials and exploring recycling solutions through its subsidiary, Neptune Papers.
- Strategic Fit: Ex-Pack’s eco-friendly practices enhance its competitive position and prepare it to meet evolving customer and regulatory expectations.
Forecast and Strategic Alignment
Ex-Pack’s financial results
reflect its dedication to scaling production and promoting sustainability.
Although facing short-term cost pressures, the company’s investments in
operational excellence and eco-friendly innovations are expected to solidify its
market position. With an expanded production capacity and focus on sustainable
practices, Ex-Pack is well-positioned to achieve its vision of being Sri
Lanka’s preferred supplier of corrugated cartons.
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