- Commences exports to a MNC for its fast moving consumer goods (FMCG) brand in the Australia and New Zealand (ANZ) region
- Noted higher key raw material costs in 1Q18 in line with increased global crude oil prices
- Declares first interim single tier dividend of 1.05 sen per share in respect of FY2018; ex-date on 28 May 2018
Melaka, Malaysia, 14 May 2018 – Leading flexible packaging manufacturer Daibochi Plastic and Packaging Industry Berhad (Daibochi; 耐慕志; Bloomberg: DPP:MK; Reuters: DPPM.KL) recorded 12.3% growth in net profit to RM6.5 million in the first quarter ended 31 March 2018 (1Q18), mainly due to new contribution to group financials from its Myanmar plant which commenced operations in 1 July 2017.
The net profit growth came on the back of 11.3% increase in 1Q18 group revenue to RM104.7 million, primarily attributed to the new contribution from the Myanmar plant. Of the 1Q18 group revenue, the Myanmar plant contributed 7.7% or RM8.1 million.
Mr. Thomas Lim (林树坤), Managing Director of Daibochi Plastic and Packaging Industry Berhad said:
“Daibochi is committed to growing our Myanmar operations to become a major player in Southeast Asia. We are actively tendering for sales contracts with major domestic consumer brands as well as regional cost-sensitive businesses, which would propel the performance of the Myanmar plant.”
“Going forward, we also expect continued growth in orders at our Malaysia plant from existing clients, on the back of resilient consumer demand regionally. This complements our efforts to cover new product lines of existing clients as well as expand our clientele, in order to achieve sustainable long-term growth.”
“Meanwhile, we are conscious of potential fluctuations in key raw material prices in the near future, which could affect near-term performance. Nonetheless, our cost-pass-through system with largely multinational clientele will eventually temper its effects, while we upkeep our wastage reduction programme to enhance productivity.”
Read the full press release here.
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