Daibochi’s 1Q net profit falls 7.1% y-o-y, declares 3.5 sen dividend

by **Cals** Tue 13 May 2014, 01:18

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Monday, 12 May 2014 17:49

KUALA LUMPUR (May 12): Daibochi Plastic and Packaging Industry Bhd’s net profit fell 7.1% to RM6.6 million for its first quarter ended March 31, 2014, from RM7.1 million in the previous year’s corresponding quarter.

However, revenue for the quarter rose 23.2% to RM90.4 million from RM73.4 million in the year before.

The group attributed the lower profit to higher raw material and operating costs due to electricity tariff hike and higher wages.

Daibochi announced a single-tier interim dividend of 3.5 sen per share, payable on June 26, 2014, for registered shareholders on June 4, 2014.

Moving forward, the group aims to improve its performance, amid a high-cost environment.

“Even as we are seeking to grow our topline by delivering higher sales orders, we remain vigilant of higher raw material and operating costs, and will continue to strive towards enhancing our production efficiency to mitigate the effects of a higher-cost operating environment,” said Thomas Lim, managing director of Daibochi.

Lim also said that the group has secured a new customer, which is a renowned household brand in Malaysia, and is eyeing potential in the Asia Pacific region, particularly in the food and beverage segment.

“At present, we are in talks with several multinational companies (MNCs) to understand and gauge how to meet their requirements and future plans

“We are currently at various stages of qualification with these clients, and are optimistic that our efforts would yield positive results,” said Lim.