Daibochi continues expansion on the back of resilient performance [PRESS RELEASE]
- Committed RM60 million for machinery purchases to expand printing, lamination, and bagging processes
- Declares 2.0 sen interim dividend in respect of the financial year ending 31 July 2020 (FY2020)
Melaka, Malaysia, 22 June 2020 – Leading flexible packaging manufacturer Daibochi Berhad (Daibochi; 耐慕志; Bloomberg: DPP:MK; Reuters: DPPM.KL) is investing RM60 million in capacity expansions in line with long term growth strategies, on the back of resilient business performance and outlook.
The CAPEX would enhance Daibochi’s capabilities and services to its customers and involve the purchase of 13 new lines for its printing, lamination, and bagging processes, which are expected to come on stream over the next six months. Separately, the Group is considering plans to purchase eight more lines, while maintaining group net gearing below 0.5x. As at 30 April 2020, group net gearing stood at 0.23x.
Being part of the essential services category in supporting the food and beverage (F&B) sector, the Group continued its manufacturing operations and supply to customers, with Standard Operation Procedures in place to ensure employee safety. This supported the results in the third quarter ended 30 April 2020 (3Q20) with net profit of RM10.8 million on RM152.0 million in revenue.
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