Drop in sales
8 October, 2014, 12:00 am
ATLANTIC and Pacific Packaging Company Limited again faced a sluggish market caused by a downturn in sales for one of its major customers and from a temporary slack in the fisheries industry for the 2014 financial year.
However, company chairman Hari Punja says it was able to use this period to implement significant process changes which saw a marked improvement in its raw material utilisation, particularly in the second half of the financial year.
The company witnessed a marginal drop in revenue compared with the previous financial from $8.03million to $7.64m.
Consequently, Mr Punja said despite the lower sales the company delivered an improved operating profit of $373,374 compared with $369,303 last year.
“Net profit for the year was even better at $381,257 against $319,216, aided by the lower corporate tax rate of 18.5 per cent against 20 per cent last year.”
As a hedge against dependence on a single product, he said the company recently embarked on projects to manufacture two new products that would enhance its presence as a provider of packaging solutions, the polypropylene bags (PP bags) and extruded plastic packaging products.
He said the machinery to manufacture these products would be located in an extension to the existing factory building in Walu Bay, Suva and was expected to be commissioned towards the end of this calendar year.
The company will also continue with phased refurbishment of its corrugation and printing equipment which will sharpen its competitiveness in coming years.
With continuing improvements in its corrugating and printing processes, he said the company expected to be in a much stronger competitive position in 2014-2015, while the capability to manufacture PP bags and extruded plastic packaging will take it into a new realm of packaging solutions.
He said they looked forward to the coming year with optimism.