- Control Print is a local player in the coding and marking market dominated by multinational corporations (MNCs) like Videojet and Domino Print Tech.
- The company has shown consolidation over the last six months, with a focus on growth seen in the first half of the financial year 2024.
- Sales growth in the third quarter was slower compared to the first half, with around 16% of revenue coming from selling printers.
- Control Print is shifting focus towards bigger customers who use printers extensively, potentially affecting revenue fluctuations from printer sales.
- Consumable sales, which constitute 62% of revenue, contribute significantly to the company's operating margins.
- Economic recovery and increased demand for packaged products due to the pandemic are driving growth in the coding and marking industry.
- Mandatory printing requirements for codes on labels of top 300 brand drugs enhance the importance of coding and marking for product safety and traceability.
- Future growth drivers include enhancing technical capabilities in the Dutch subsidiary and entering a joint venture to expand into eco-friendly packaging solutions.
- The company has ample operating capacity at 60% utilization and a strong balance sheet for strategic expansions or acquisitions.
- Control Print plans to reward shareholders through buybacks or dividends and anticipates strong revenue growth while maintaining a stable growth profile.
