The Paper Products Ltd

12 Months Net Sales up by 15%

PBT for 12 Months drops by 12%

Mumbai, January 28, 2009: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its audited Financial Results for the year ended December 31, 2008. The company achieved sales of Rs.612.09 crores during the year, representing a growth of 15%, over net sales of Rs.532.06 crores in 2007. The profit before tax is Rs.29.77 crores compared to Rs.33.78 crores in 2007 showing drop of 11.9%. The basic and diluted earnings per share is Rs.3.40 as compared to Rs.4.53 in 2007.

The company has changed the earlier practice of reporting net sales including inter unit transfers to now reporting only net external sales. This has no impact on profits or reserves.

In comparison between quarters, the company has achieved net sales of Rs.142.79 crores in Q4-2008 representing a marginal growth of 0.3%, over net sales of Rs.142.29 crores in Q4-2007. The profit before tax is Rs.6.15 crores in Q4-2008 as compared to Rs.11.15 crores in Q4-2007. The basic & diluted earning per share is at Rs.0.61 in Q4-2008 as compared to Rs.1.47 in Q4-2007.

A forex loss of Rs. 13.20 crores & Rs.2.66 crores has been taken in full year 2008 & Q4-2008 results respectively. This includes a book loss of Rs. 4.02 crores & reversal of book loss of Rs.1.73 crores respectively, for mark to market valuation of forex contracts which have been entered into to hedge the forecast transactions,consequent to the ICAI announcement of 29th March 2008 on Accounting for Derivatives.

The Board of Directors have recommended a dividend of Rs.1.80 per equity share of the face value of Rs.2 each fully paid up.

Reconstruction of Thane Plant is ongoing & relocation of operations in a phased manner is in progress.

Mr.Suresh Gupta Managing Director & Chief Executive Officer has in addition been appointed as Executive Vice President,Flexibles Global and member of the 'Group Executive Team' of Huhtamaki Group with effect from 1st January 2009. Mr.Suresh Gupta has earlier been holding position of Senior Vice President,Flexibles Asia -Oceania of Huhtamaki Group.

 

About The Paper Products Limited (HUHTAMAKI-PPL):

PPL is India's leading manufacturer of primary consumer packaging with 2008 gross sales of Rs.675 crores, and net capital employed of about Rs.313 crores.

Since 1999, PPL is a joint venture with the global packaging major, Huhtamaki Oyj, Finland who hold about 59% of the equity capital. Huhtamaki is one of the world's top ten consumer packaging multinationals.

PPL is a pioneer and the technology and market leader in flexible packaging in India with manufacturing facilities at Thane, Silvassa, Hyderabad and Rudrapur. It meets the packaging needs of almost the entire range of FMCG segments including personal products, personal wash, laundry, foods, sauces, beverages, bakery products, spices, chocolates and confectionery, dairy and also for seeds, specialized chemicals, electronics and many other specific specialized uses including anti-spurious packaging.

The Package Protection and Decoration products range includes latest leading edge technologies - shrink sleeves, wrap-arounds, heat transfers, pressure sensitives and metallised paper labels.

Manufacturing of specialized cartons and cartoning systems, manufacture of poly films, specialized barrier metallising and high-end application extrusion coating are also part of PPL's product offerings.

The company's packaging machines division offers complete packaging solutions to customers.

PPL mainly caters to the premium segment of packaging and its clients include Britannia, Cadbury, Castrol, Coca Cola, Dabur, Emami, Eveready, GSK, Godrej, Hindustan Latex, Hindustan Unilever, HPCL, ITC, Marico, MICO, Nestle, Pepsi, Perfetti, P&G, Tata Tea, TTK-LIG, Wipro and may more.

More at our website : www.pplpack.com

Mr. Ravi Chidambaram Controller - Finance & Joint CFO The Paper Products Limited Board: +91 - 22 - 2534 3691- Ext. 453 Mobile +91 - 98216 04825