Press Releases2014

Jun 02, 2014
Essel Propack declares its Q4 results for FY14

Essel Propack global operations crossed Rs. 2000 Crores revenue for the financial year 2014, posting a strong growth of 16.1% over previous year. The Company posted all time high global net profit of Rs. 107.8 Crores with 33.2% growth over previous year. The operating margin for the year expanded by 60 bps.

The business momentum continued for the 7th quarter with quarterly revenue growing by 22.5% over the previous year and 8.8% sequentially. The Operating Profit grew by 22.5% and the Net Profit before exceptional item grew by 23.3% over the same quarter previous year.

India stand-alone continued the strong momentum helped by sales growth of 15% over previous year. India stand-alone posted a Net profit of Rs. 54.5 Crores for the year as compared to Rs. 49.84 Crores for the previous year. The PAT after adjusting exceptional items has grown by 17.9%.

Highlights:


  • For the quarter Europe-38%, EAP-19% and AMESA-11% posted strong revenue growth over the previous year. Americas remained flat during the quarter in revenue terms vs previous year, but grew 16% sequentially. Cumulatively for the financial year ending March 2014, all the four regions have posted healthy growth.
  • Europe revenue grown by 28% over previous year and operating loss for the year reduced by 69%. The company's strategy to turnaround the Europe operations is on track with ramp up of the new laminated tube facility, new business development in non-oral care, productivity improvement and improved operational efficiencies at Poland and volume expansion in non-oral in Germany. In Russia corrective measures helped improve output, efficiency and prices.
  • EAP revenue grown by 18% during the year. The Company has mainly focused on branding and marketing strategy for new business category, which has yielded good results. The new cosmetic tube making facility in Philippines which commenced operations during the year is fully ramped up. During the year the region bagged a supply contract for a multi-national cosmetic brand in China and started supply. Philippines is in discussion with an existing multinational company for the other cosmetic opportunities.
  • Americas Region has been steadily improving performance during this year with thrust on new business development and improved operational efficiency. The region has grown by 7% for the year in revenue. The Operating profit grew by 21% for the year due to better productivity, cost reduction. The region has started commercial supplies to new multi-national customers in Brazil and Mexico.
  • AMESA is growing double digit helped by buoyant demand for tubes. A new state of art laminator is commissioned and commercial supplies started to domestic as well as international customers. Egypt has won a new supply contract in beauty care segment and now also expanding its reach to other Middle East and Asian countries where, currently there is no presence.
  • India has started operation with Colgate on COCO basis (Customer Owned Company Operated) in plant model for the first time.
  • Non oral care sales grew strongly as per plan. The ramping up of new long term contract for supply of oral care tubes in Europe and stronger than forecasted oral care demand in India caused value share in the company's sales of the non-oral care category for the year to be 39 % vs 41 % in the previous year.
  • Finance cost continues to be optimized with average rate of borrowing reducing by 132 bps over the previous year. Significantly lower finance cost (10.8% lower versus previous year) has further contributed to the improved net profits this year.
  • The Company staying its course pursuing profitable growth through active Customer engagement, innovation and efficiency improvement.

Essel today is the name that the FMCG Brands Indian and MNC, small and big, mass and niche, established and the new- trust for their success and future. This trust in turn drives your Company to innovate and partner, and to remain the best in class purveyor of packaging solutions in the tube space.

As a FMCG play, the Company sees huge opportunity to grow, leveraging the new regional manufacturing hubs of its Global Customers, and the ongoing shift from the Plastic to Lami tubes where the Company is pioneering in non-oral care laminated tubes.

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