Daibochi 3Q profit up 7% yoy at RM7.4m, declares 4 sen div

by **Cals** Thu 07 Nov 2013, 00:55

Business & Markets 2013

Written by Jeffrey Tan of theedgemalaysia.com

Wednesday, 06 November 2013 18:44

KUALA LUMPUR (Nov 6): Daibochi Plastic and Packaging Industry Bhd’s net profit rose 7% year-on-year (y-o-y) to RM7.4 million from RM6.9 million in the third quarter ended Sept 30, 2013.

Similarly, 3Q revenue hiked 33% y-o-y to RM87 million from RM66 million a year earlier.

In a statement to the stock exchange, the flexible packaging solutions provider said its packaging segment recorded the highest quarterly profit before tax achieved to date.

Daibochi said the improved revenue collection was mainly attributable to the increase in sales to MNC customers.

It said this was particularly from the packaging segment in the F&B sector and the recognition of RM6.17 million from the sale of a piece of commercial land in the property segment.

Meanwhile, Daibochi declared a third interim dividend of 4 sen per share.

Cumulatively, net profit for nine months stood at RM21 million versus RM18 million in the corresponding period, while revenue raked in was RM230 million compared to RM205 million a year earlier.

Daibochi its larger profit and higher sales volume were due to favourable product mix and the continued focus on wastage control.

“Looking ahead, we are dedicated to continually expand our revenue base and improve wastage control measures to ease the short-term impact of the raw material price hikes,” said Thomas Lim, Daibochi managing director.