NEWSROOM

[Bernama] Daibochi H1 Pre-Tax Profit Lower On Rising Raw Material Prices

28 July 2010

KUALA LUMPUR, July 28 (Bernama) — Daibochi Plastic and Packaging Industry Bhd\’s pre-tax profit for the first half ended June 30, 2010 fell by 7.6 per cent to RM12.1 million from RM13.1 million in the same period last year.

Its net profit declined by 14.7 per cent to RM9.2 million from RM10.8 million in the previous year.

Revenue, however, grew by 6.6 per cent to RM120.9 million from RM113.4 million previously on higher sales.

In a statement on Wednesday, Daibochi, flexible packaging solutions provider, said the lower profit was due to the rising raw material prices, foreign exchange loss as well as research and development (R&D) expenses during the current reporting period.

Managing director, Thomas Lim, said the company has maintained its emphasis on continuous innovation in order to develop higher-value packaging in line with its planned foray into new sectors.

He said the company has started to reap the benefits of its R&D initiatives and recently obtained certification to market its new electronic packaging solutions for the electronics manufacturing industry.

\”This is certainly a step in the right direction as we serve more sectors to broaden our revenue base,\” he said.

Daibochi declared a second interim tax-exempt dividend of 2.5 sen per share, amounting to RM1.87 million in respect of first half of 2010, to be paid on Sept 3.

The company supplies flexible packaging mostly to food and beverage and fast-moving consumer goods industries.

Its customer base includes Nestle, Cadbury, Kraft/Danone, Quaker, Munchy\’s, Cocoaland and Power Root.

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News Room [Bernama] Daibochi H1 Pre-Tax Profit Lower On Rising Raw Material Prices