ACME Announces Turnaround Performance for Q3 2022/23

ACME Printing and Packaging PLC (ACME), is a leading flexible packaging manufacturer in Sri Lanka, providing quality flexible packaging solutions for over seven decades. The Company posted the latest financials portraying a turnaround performance for the 3rd Quarter (Q3) of the financial year 2022/2023. At a time when businesses in Sri Lanka are operating in a highly volatile business environment, navigating through these challenges, and achieving such results is indeed a remarkable achievement and progress towards sustainable growth.

For the quarter ended 31st December 2022, ACME as a Group recorded a revenue of Rs. 334 Mn, which was a 49% increase when compared to the corresponding period’s achievement of Rs. 224 Mn. However, gross profit of Rs. 111 Mn, was a 746% growth compared to the loss of Rs. 17 Mn incurred during the same period last year. Profit before tax for the said period was Rs. 29 Mn, a 138% compared to the loss of Rs. 74 Mn incurred during the corresponding period of last year.  Prudent cost optimization strategies adopted to improve the Groups’ Gross profit margin, gross profit, and the working capital cycle in addition to the infusion of working capital through a Rights Issue is said to have resulted in improved operations.

ACME as a Company achieved a turnover of Rs. 420 Mn for the said 3rd quarter under review, a growth of 134% compared to the turnover of Rs. 180 Mn recorded in the corresponding period of last year.  In addition, mirroring the achievements of the Group, the Company further achieved a turnaround gross profit of Rs. 70 Mn., a laudable transformation when compared to the breakeven achieved in the same period last year.

Analysing the 9-month period ending 31st December 2022, the Group achieved a revenue of Rs. 841 Mn, a 0.1% growth compared to the Rs. 840 Mn achieved during the corresponding period of last financial year. The Group concluded the period on a high with a net profit of Rs. 54.5 Mn when compared to the loss of Rs. 226.5 Mn incurred during the corresponding period last year. Similarly, as a Company, ACME’s revenue for the 9 – month period was Rs. 882 Mn, a 28% increase compared to the Rs. 687 Mn achieved in the last financial year. Net profit for the said period was Rs. 58 Mn compared to the net loss of Rs. 65 Mn incurred in the corresponding period of the previous financial year. This remarkable achievement of generating a positive bottom line was achieved after a period of several years.

Several cost optimization strategies which attributed to this remarkable transformation were adopted by the new management during the period under review.   As such, the Group managed to keep the distribution and administrative expenses to a minimum, the cost of borrowing continued to increase significantly due to the market liquidity scenarios in the country.  While this had a considerable impact on the Group’s bottom line, curtailed credit lines which affected working capital also restricted the Group from operating at the optimum capacity. Despite all this, the Group’s commendable performance was a clear demonstration of the Group’s resilience and willingness to accept challenges and forge ahead with commitment and determination.

ACME Printing and Packing PLC is a subsidiary of Lankem Ceylon PLC. The other members of the Board of Directors are Mr. A. Hettiarachchy, Mr S.D.R Arudpragasam, Mr A. Rajaratnam, Mr J M Swaminathan, Mr M P A Sirimane, Mr Suren Goonewardene, Mr G K B Dasanayake and Mr. A.C.S Jayaranjan and Mr. H.K.P. Jayasuriya (Chief Executive Officer).