Metro Performance Glass (MPG) is the biggest glass manufacturer in New Zealand. After one-off costs and tax adjustments to offset higher revenue, the glass manufacturer declared a slightly lower profit. Profits dropped by 6% to $19.4 million in the year to March from the $20.5 million profits that it earned last year.
On the other hand, group revenue increased by 30% to $244.3 million. This includes the contribution from Australian Glass Group, a newly acquired company. MPG bought Australian Glass Group for more than $43 million is order to pursue its plans for expansion of the processing business across the Tasman.
If you will set aside the one-off costs, operating earnings were up by nearly 20% because of the construction boom in New Zealand. Sales of glass products increased because of the construction of new houses and renovations in Australia.
According to Nigel Rigby, a chief executive of Metro Performance Glass, the company is building a strong position on both sides of the Tasman. Their competitive advantage remains because of the company’s ability to deliver a wide range of high specification products for short lead times. They also provide a strategic defence throughout the building cycle.
MPG said that while New Zealand is their primary focus, there is long term growth opportunity and growth in Australia. Low interest rates, strong immigration and an improving economy are sustaining the momentum in residential and commercial constructions. A strong position is being built by MPG in Australia’s glass markets after it has processed a record volume of glass products.
The company has also diversified its operations on the South Island and is focusing on automation, processes and costs. Since the building boom is now shifting to the Upper North Island, MPG is now shifting its focus in meeting demands and expansion into the commercial and retrofit markets.
Meanwhile, the focus of economy Glass is to exceed its customer’s expectations and to provide the highest quality products that will match with customer budget and requirements. Some of the glass products offered to consumers include balustrades, showers and pool fencing that is made with the expert workmanship.