NTPM 1Q net profit plunges 41% to RM7 mil

by **Cals** Fri 05 Sep 2014, 21:43

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Friday, 05 September 2014 18:33

KUALA LUMPUR (Sept 05): NTPM Holdings Bhd's net profit for the first quarter ended July 31, 2014 (1QFY15) dropped 41.47% to RM7 million, from RM11.96 million a year ago, due to higher cost of raw material, labour and utilities, especially electricity and natural gas.

Its revenue however, grew marginally by 0.4% to RM132.24 million, from RM131.75 million in 1QFY14, thanks to higher demand for tissue products in the domestic market.

Earning per share for 1QFY15 fell to 6 sen, from 11 sen.

NTPM told Bursa Malaysia today that it expects the business environment in the current financial year ending April 30, 2015 (FY15) to be more competitive, due to the mounting costs pressure and keen competition.

"Both the tissue and personal care segment will continue to operate in a tough environment, as most of the fast-moving consumer goods companies continue to shift their focus from protecting margins to increasing volumes," it said.

Rising labour and overhead costs are also expected to dampen the profitability of the group, it said.

"In light of these challenges, we have strategic plans and control measures put in place, to mitigate the impact from these adverse conditions. We are also looking into ways to strengthen our customer base and improve our distribution channel," it said.

NTPM is looking at developing new products, and opportunity to venture into new business segments, if the expansion synergizes with its current business model.