BPPL Holdings PLC, Sri Lanka’s largest brush-ware manufacturer and exporter, saw good sales and earnings during the three months ending June 2021, as the group’s portfolio diversification plan, launched a few years ago by its venture into polyester yarn manufacturing, is functioning as expected.
The manufacturer of brushware and cleaning goods for international merchants as well as its own brand recorded revenues of Rs.1.0 billion in the three months to June, its first fiscal quarter, up 70% from the same time last year, which was hampered by virus-related factory closures.
BPPL Holdings has diversified into synthetic filament extrusion and polyester yarn production for customers in both Sri Lanka and overseas. The company’s core business has long been to manufacture brush-ware and cleaning products such as wooden handles, brooms, brushes and mops for both professional and household applications. With the commissioning of a second plant, the company expects these two product lines to become major contributors to the group financials in the medium term.
BPPL Holdings in February broke ground for its second plant for polyester yarn manufacturing at its Horana facility, which has 20 percent more capacity than the existing facility. With the commissioning of the second plant, the company will more than double its existing polyester fiber production capacity. Demand for recycled yarn is on the rise from global fashion brands, which mostly sourced through their nominated Sri Lankan fabric mills.
BPPL’s filament and yarn sales more than tripled during the quarter to Rs.375.2 million, from Rs.107.3 million a year ago. The company however faced pressure on their gross margins, which declined by 2 percent, stemming from having to resort to imports to meet orders. Further, the drop in container availability and reduction in shipping lines serving Sri Lanka continued to impact costs.
