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Increased Demand Boosts Quarterly Revenue by 14% at Goodpack Limited

goodpack logoGoodpack Limited (SGX: G05), the world’s largest provider of returnable and environmentally-friendly Intermediate Bulk Containers, made public its third quarter results on Monday.

Major customers of Goodpack include major tyre manufacturers and chemical companies. The IBC are used in over 60 countries worldwide, with Goodpack’s operations spanning Africa, Asia, Europe, Middle East, North America, Oceania and South America.

For the latest quarter, revenue increased by 14.2% year-on-year from US$44.8 million to US$51.2 million while net profit went north by 20.2% from US$10.9 million to US$13.1 million. The climb in revenue was mainly due to increased penetration in existing markets as a result of conversion of new customers and increased demand from existing clients.

For the nine months, revenue grew 10.5% to US$154.2 million while net profit increased improved by 12.8% to US$39.4 million. The firm cited the same reason as above for the revenue increase.

As of 31March 2014, the balance sheet carried a total debt of US$296 million and a cash balance of $176 million. This is a weaker situation, as compared to 30 June 2013, where total borrowing was at S$298 million and the cash balance stood at S$229 million.

The firm generated an operating cash flow of US$15.7 million for the nine months versus S$14.9 million generated last year.

In April this year, there were talks about Goodpack being taken private but nothing concrete has materialised thus far.

Shares at Goodpack closed at S$2.31 on Monday, valuing the company at a historical PE of 20.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.