PTL's Q2 earnings soar on upsurge in Covid-driven PET packaging demand

Polyplex (Thailand) Plc (PTL) recorded a 65% rise YoY in normalized net profit for the quarter 2 (July to September), thanks to the continued strong demand for the polyethylene terephthalate (PET) film and effective cost management and also due to additional capacity from the new Indonesia plant.

The SET-listed PTL, an integral part of Polyplex Corporation Ltd which is the world's fifth largest producer of PET Thin film, earned 3,748 million baht in sales for the second quarter of the fiscal year 2020/21, a growth of 12% YoY, compared to 3,348 million baht in the same period of the previous year.

PTL's Board of Directors has approved an interim dividend payment of 0.54 baht per share for the quarter, or a total amount of 486 million baht. The record date for dividend entitlement is 24th November and the payment date is 4^th December.

PTL has seen a strong uptick in demand for PET thin film since last few months, as it is widely used as the flexible packaging for foods and non-food packaging (health and hygiene/ personal care products), according to PTL Managing Director Amit Prakash.

The demand outlook for thin PET film for flexible packaging for October- December 2020 is expected to stay strong as the coronavirus outbreak still has a significant impact on several countries particularly the US and European countries where daily cases have recently shot up and lockdowns being re-imposed.

With PTL's high production capacity, the company is well positioned to capture the rising demand for PET film especially for the food industry, he noted.

PTL's sound second-quarter financial performance manifests the company's strong position as the world's fifth largest PET film producer supported by its reputation as a reliable supplier of quality products, strong global customer base as well as it’s the efficient supply chain and focus on innovation and expansion.

These are key drivers to PTL's growth, he pointed out.

The company has moved to consolidate its position as the world's leading manufacturer and distributor of PET films by deciding to ramp up its BOPET thin film production capacity by 50,000 tons per year and by de-bottlenecking the PET resin production from 58,000 tons per year to 86,000 tons per year at its Decatur plant in the US state of Alabama.

The US$103 million facility is expected to come on line two years from now.

Its output is geared towards meeting the increasing demand for thin PET film used mainly for flexible packaging application in the US.