Packaging company records growth in revenue

LOCAL packaging company, Atlantic & Pacific Packaging Company Ltd recorded a 3 per cent ($15 million from $14.6m) growth in revenue while profit doubled to $2m in 2019 from $1m reported during the previous financial year.

Company chairman Rohit Punja said the packaging industry, especially the corrugated packaging market was expected to grow in the light of rapid development of e-commerce and for environmental sustainability reasons.

“However a strong US dollar and any increase in fuel cost would push the production costs upward, putting pressure on pricing and margins.

“The investment made by the company is a new warehouse facility is expected to contribute to greater storage and operational efficiencies,” said Mr Punja.

He said the company’s sustained focus and efforts in improving operational efficiency and minimising costs, especially in the backdrop on increased paper and other raw material costs, with improved price realisation resulted in the improved financial performance during the year.

Meanwhile the company declared an increased dividend of 5.50 per cent share in comparison with 4cents per share during the previous year, resulting in an outflow of $0.44m compared with $0.32m last year.