A Message from NCI Chairman
Dear esteemed shareholders,
Peace be upon you,
On behalf of myself and my fellow members of the Board of Directors of the National Carton Industries Company, I am delighted to welcome you to the annual meeting of the General Assembly. We gather here to provide you with an overview of the company’s current state, its financial and administrative reports, and other matters relevant to the future of our company. Together, we look forward to achieving significant milestones in the upcoming period.
As you may know, the past year witnessed a significant leap in our company’s journey. Despite ongoing international crises, our company has achieved remarkable business growth and impressive figures. At the end of 2022, our company’s sales reached $8,193,651 compared to $7,376,094 in 2021, marking an increase of 11.08%. This increase in revenue can be attributed to our increased market share in the panel and press sectors, as well as an increased market share from major customers in the West Bank and Gaza Strip.
However, despite the challenges we faced, the company’s operating profit for 2022 amounted to $820,752, a decrease of 40.79% compared to $1,386,395 in 2021. This decline can be attributed to the global rise in input costs, including raw materials, specifically paper, which in turn affected production costs and operating expenses, resulting in a significant decline in profit margins.
Overall, the net profit for the year 2022, after taxes, amounted to $656,981 compared to $1,147,856 in 2021. The basic and diluted earnings per share for the year were $0.13 compared to $0.23 in 2021, while the return on investment was 9.34% compared to 13.15% in 2021.
In parallel, the company continued to attract new customers throughout 2022 to increase its revenues. We will further dedicate our efforts to this goal during the current year and beyond.
I would like to mention that the previous year was not easy in terms of the economic landscape. Numerous crises unfolded on the international stage, such as the Ukrainian-Russian war, and the ongoing repercussions of the COVID-19 pandemic, albeit at a slower pace. Consequently, fluctuations in raw material prices and their significant cost increases were to be expected, as previously mentioned. Nevertheless, the second half of 2022 witnessed an economic recession, which we hope will not persist for long. We look forward to a year of significant achievements in 2023.
Despite all the challenges, the company continued, as per its ambitious plans, to execute several development projects throughout 2022. These projects included the operation of a multi-layered carton printing and forming line with quality, specifications, and printing capabilities being provided in Palestine for the first time under the “Flexo Printing” system.
The attention of the Board of Directors and the executive management of the company was not limited to improving business plans, logistics, and equipment. It also encompassed the human resources aspect, recognizing it as a fundamental pillar in the company’s journey. Therefore, efforts were focused on improving the performance of our employees and engaging them in specialized training courses. Furthermore, the technical and administrative management was reinforced with highly competent individuals.
In conclusion, the Board of Directors and the executive management will continue working diligently for a better future for the company. This includes diversifying and expanding the company’s product portfolio, adding new production lines to enhance its capacity and efficiency to the highest standards. Despite the intense competition and unprofessional practices, we are motivated to give more, aiming to preserve the company’s capabilities and maximize the rights of its shareholders.
We all hope to meet again next year, having achieved the aspirations of our valued shareholders in our company, Al-Ghraa. Wishing each and every one of you good health and abundant well-being. Peace be upon you and the mercy of Allah.
Mahdi Hayati Al-Masri
Chairman of the Board of Directors.