Printcare records good performance

Printcare Group posted a turnover of Rs. 1,715 million for the six months ending September 30 which was a growth of 33 per cent over the same period last year.

Most of the growth has come from new products launched within the last two years to cater to the growing telecom and apparel industries.

Products that cater to the tea industry have also shown reasonable growth.

Profit before interest and tax has improved to Rs. 211 million in the six month period ending September 30 from Rs. 149 million during the same period last year, a growth of 42 per cent .

Profit before tax has increased to Rs. 93 million in the six month period from Rs. 54 million in the same period last year, an increase of 72 per cent.

The growth in turnover and profit has been primarily due to several initiatives taken by the Group over the last two years to identify and enter more profitable segments, increase product quality and customer service, improve productivity and reduce costs.

The Group also successfully secured lucrative one-time promotional orders during the first half of the year which also helped add to the profit growth.

While the growth in Printcare's profitability has been impressive over the first half of the year, the conditions prevalent in the world markets and recession in some of Printcare's key overseas markets will impact profit growth in the second half of the year and in the 2009-10 financial year.

The group is taking steps to further improve its cost structure and strengthen its liquidity position in anticipation of what is feared to be one of the worst global recessions in recent history.

There are clear indications that all segments will experience a decrease in demand with the tea segment suffering the steepest decline.

The Printcare Group supplies customised tea bag tags and envelopes for the tea bag industry.

In addition to the tea industry, Printcare is also a major supplier to the telecom, food and beverage and apparel industries.