PG Industries turnover rose almost five fold to $1,7 trillion during the financial year to March 2006, with profit before tax increasing to $325 bill
ion, from a $35 billion loss recorded during the same period last year.
Strong cash generation enabled PG Industries to reduce bank debts, rebuild inventories and to finish the year with a net cash position of $150 billion against a debt of $29 billion last year.
Against this background, the group achieved an encouraging attributable income of $228 billion against a loss of $41 billion during the same period last year.
During the period under review, PG Industries achieved an operating profit of $341 billion, from $54 billion recorded
during the interim period the previous year.
The second half of the group’s reporting season was characterised by positive growth in both the sales and profit levels.
“Turnover for the year increased by 484% to $1,7 billion from $292 billion recorded last year. The group’s operating margin improved to 20% from 1% and the operating profit increased $341 billion from $2 billion,” the group said in a statement explaining the results.
Despite having no major contractual capital commitments, the company is taking a cautious approach to incurring bank debts in the present extreme and unpredictable environment.
As such the company said it would not be declaring a dividend.
“Given the uncertainties of the market and the need to re-equip and further consolidate the ongoing recovery of the business, the board decided that it would be inappropriate to declare a dividend at this time,” the company said.
Going forward, the group said it would continue with its recovery path. It has improved cash flow and cash resources and has a balanced portfolio of business and a resilient management team.
“We seek to improve market penetration with focused cluster strategies based on close partnerships with key customers and suppliers.
“The coming year will be tough and unpredictable, but your group is now better equipped to face these difficulties as evidenced by its performance in the second half of the financial year,” the company said.