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Newly listed water bottling firm Pleass Beverage Packaging (PBP) today announced an after tax profit of $398,584 for its financial year ended December 2008, a 47 percent increase from its 2007 results.
PBP chairman Warwick Pleass said the performance was achieved on the back of a 20 per cent growth in revenue, with sales revenue for the year coming in at $4,837,424 (2007: $4,045,905).
“The results were very encouraging considering the tough business environment in which PBP operated throughout the year,” Pleass said when making the announcemet at the South Pacific Stock Exchange (SPSE) where the company is listed.
“Our people drove our beverages division to generate 37 per cent sales growth. Beverages, mainly bottled water, currently makes up about 38 per cent of our revenue and is our fastest growing segment. This growth has underlined our confidence in the future of beverages to our business.”
Packaging, the company’s other division, had a tough year especially in the second half.
“The decline in tourism and general consumer spending showed through in weaker than expected sales. Nevertheless packaging still grew 11percent over the year,” Pleass said.
Despite the strong growth in revenue and profitability, the Board and management were disappointed that the company missed its profit targets for the year, as stated in its prospectus for the Initial Public Offer (IPO) and listing.
“The PBP IPO, which opened in late 2008, raised $0.9m. This was followed by a listing on the SPSE in February 2009. We had projected a $477,229 NPAT figure. However our projections had been based on erroneous monthly data starting in January 2008, stemming from errors in external accounting. This related to the treatment of inventory in our books which understated cost of goods sold in some months and which ultimately affected profits. In addition, a tougher than expected fourth quarter, particularly in packaging did not help,” Pleass said.
He said, however, PBP was well placed to make it up to our shareholders.
“We have since made modifications to our accounting software and processes and this issue has been resolved. We are also in the process of appointing a specialist cost and management accountant and are implementing a program of cost rationalisation and efficiency gains throughout the company.”
Pleass remained optimistic that the current global financial crisis will pass and that the company will survive the downturn by being adaptable and by maintaining a strong and prudent financial position.
PBP stocks last traded at 94 cents a share.
