Karachi: Ghani Global Glass Ltd. (GGGL) revealed a notable increase in earnings for fiscal year 2024 during its latest analyst briefing, driven by a significant rise in other income and robust sales in its specialized glass tube segments.

According to AKD Securities Limited, GGGL posted earnings of PKR 145 million (EPS: PKR 0.60) in FY24, up 42% from PKR 102 million (EPS: PKR 0.42) in the same period last year. This increase was largely due to a jump in other income, which reached PKR 176 million compared to just PKR 5 million the previous year. However, gross margins declined to 22.5% from 26.1% in FY23, attributed by management to higher fuel costs, including LNG/natural gas and grid tariffs.

The company holds a 70% market share in the Chinese glass tube market and between 15% and 20% in the European market, with strategic plans to expand its European market share to 50% within the next two years. Currently, GGGL operates 16 ampoule machines and 5 vial machines, with a production capacity of 40 million ampoules per month. This capacity is expected to increase to 55 million ampoules per month following the acquisition of six additional ampoule machines from Europe, with two installations scheduled for this month and four more by February 2025.

The capital expenditure for this expansion and the basic maintenance and repair (BMR) of an existing furnace is estimated between PKR 450 million and PKR 500 million. Additionally, management is negotiating to expand glass tube exports to regions including the MENA area, Latin America, South Asia, and Africa.

Elevated inventory levels are currently due to the import and upcoming commissioning of a second furnace, which is expected to temporarily disrupt production.