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Daily Newsletter

08 August 2023

Daily Newsletter

Mold-Tek reports 13.71% net profit decline in Q1 FY24

The company also saw high sales volumes within its Food and FMCG segments.

India-based Mold-Tek Packaging has reported its net profit declined by 13.71% to Rs190m ($2.29m) in the first quarter (Q1) of financial year 2024 (FY24), from Rs217 in the corresponding period in FY23.

The company’s sales volume for the period ending 30 June 2023 improved by 1.81% against Q1 FY23.

Mold-Tek, which manufactures injection-moulded rigid plastic packaging containers, saw its sales volumes for its Food and Fast-Moving Consumer Goods (FMCG)-pack business continue to grow at 13% while sales volume were ‘sluggish’ for both its Paint-Pack and Lube-Pack segments during the quarter.

Its revenue from operations was Rs1.85bn in Q1 FY24.

The company posted earnings before interest, taxes, depreciation, and amortisation of Rs356m in Q1 FY24, down by 4% from Rs372m in Q1 FY23.

Basic earnings per diluted share for the company was Rs5.64 in Q1 FY24, down from Rs6.68 in the same period last year.

The company said in a statement: “Overall the company has made significant additions in product mix, introduced better functional packs and implemented use of recycled material for industrial packaging.

“As always, Mold-Tek has been in the forefront of establishing use of recycled input materials in our new pack designs. Further, there is a steep fall in raw materials which put stress on margins due to drop in inventory valuation. Looking ahead, we remained focused on pursuing growth and adding high-value product mix in the coming quarters.”

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.