Colombo, Sri Lanka – 01 September 2026 – ACME Printing & Packaging PLC (CSE: ACME), a prominent player in Sri Lanka’s flexible packaging industry, has released its Annual Report for the financial year ended 31st March 2026. The report, made public on 31st August 2026, highlights a pivotal period of strategic transformation, operational restructuring, and significant financial strengthening aimed at rebuilding for long-term resilience and sustainable growth.
The company, with a legacy spanning over seven decades, articulated a clear vision: “EVERY TRANSFORMATION BEGINS WITH A VISION CLEAR ENOUGH TO SHAPE WHAT COMES NEXT.” This ethos guided ACME through a challenging yet defining year marked by deliberate rebuilding efforts and a sharpened focus on future expansion.
Strategic Rebuilding and Operational Discipline
ACME’s Annual Report for FY 2025/26 underscores a comprehensive approach to recovery, likened to the precision of line art and the discipline of an engineered blueprint. Key strategic pillars included extensive organisational restructuring, lean workforce integration, disciplined cost management, and refined commercial strategies. These were not isolated actions but integral components of a larger framework designed to fortify stability and prepare the business for future market demands.
A significant highlight of the year was the strategic transition to the modernized Pannala facility. This move, coupled with upgraded technology and enhanced capabilities, is set to create a leaner and more agile operating model, positioning ACME with renewed confidence for upcoming opportunities.
Financial Performance Amidst Transformation
Financially, the year ended 31st March 2026 presented continued challenges. The Group recorded a revenue of Rs. 909.3 million, a decrease from Rs. 1.196 billion in the previous financial year. This decline was attributed to a challenging operating environment, shifts in production and customer mix, and the ongoing transition of manufacturing activities to the new Pannala platform.
Gross profit for the Group significantly reduced to approximately Rs. 20.9 million from Rs. 50.1 million in 2024/25, reflecting pressure from high manufacturing costs, raw material expenses, production inefficiencies, and an inability to fully pass cost increases to selling prices.
Consequently, the Group reported a loss after tax of approximately Rs. 494.6 million, an increase from Rs. 405.9 million in the preceding year. This loss reflects underlying operational challenges, substantial finance costs, depreciation, and impairment-related charges.
Substantial Capital Strengthening Initiatives
Despite the operational pressures, FY 2025/26 marked a crucial turning point in ACME’s financial restructuring and capital strengthening. A major milestone was the successful completion of a Rs. 1.425 billion rights issue, comprising 570 million new ordinary shares issued at Rs. 2.50 per share. The proceeds from this issue were strategically utilized to:
- Settle financial obligations.
- Reduce borrowings.
- Meet working capital requirements.
- Fund planned investment programs, including factory modernization.
This capital infusion dramatically improved the Group’s total equity, moving from a negative Rs. 518.5 million as at 31st March 2025 to a positive Rs. 476.5 million as at 31st March 2026. At the company level, equity improved from a negative Rs. 35.8 million to a positive Rs. 810.2 million. Group interest-bearing borrowings also saw a substantial reduction from Rs. 1.660 billion to Rs. 769.6 million.
Further bolstering its financial position, the Company completed the disposal of its land and factory premises at Piliyandala to Singer Sri Lanka PLC for a total consideration of Rs. 630 million during July 2026. This transaction unlocked significant value from a non-core asset and supports the ongoing transition to the Pannala manufacturing platform.
Additionally, the Board of Directors initiated and obtained shareholder approval on 11th June 2026 for a capital reduction exercise aimed at eliminating accumulated losses and creating a more appropriate capital structure for future growth. These post-reporting date events signal a robust commitment to financial sustainability.
Outlook and Future Focus
Chairman A. Hettiarachchy expressed realism about the remaining challenges but confidence in the stronger foundation now in place. The immediate priorities for ACME are to restore sustainable profitability, improve manufacturing efficiency, increase capacity utilisation, strengthen customer relationships, and expand revenue opportunities.
The company remains focused on developing its core flexible packaging business while exploring opportunities to broaden its customer base and enhance product capabilities. Investments in modern manufacturing technologies and continuous operational improvements are central to its strategy. ACME’s vision is to be the preferred and dynamic provider of flexible packaging solutions, driven by continuous improvement, operational excellence, and customer focus.
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