Daibochi foresees higher local and export sales in 2016 [PRESS RELEASE]
26 May 2016
- 1Q16 domestic sales grew double-digit quarter-on-quarter
(q-o-q), indicating rebounding consumer sentiment for food and beverage (F&B) and fast moving consumer goods (FMCG)
- Investments into new machinery to catalyse growth and improve efficiency
Kuala Lumpur, Malaysia, 3 May 2017 – Leading flexible packaging manufacturer Daibochi Plastic and Packaging Industry Berhad (Daibochi; 耐慕志; Bloomberg: DPP:MK; Reuters: DPPM.KL) foresees for both local and export sales to grow in the current financial year ending 31 December 2016 (FY2016), banking on sustainable demand for F&B and FMCG sectors.
For the first quarter ended 31 March 2016 (1Q16), 53% or RM47.6 million of group sales was derived from overseas, namely from customers in South East Asia, Australia and New Zealand (ANZ). The domestic market made up the balance 47% or RM42.1 million of total revenue.
Speaking at the Annual General Meeting today, Daibochi Managing Director Mr. Thomas Lim based the Group’s optimism on its order visibility and positive sales trends, on the back of the encouraging 1Q16 performance.
Mr. Thomas Lim (林树坤), Managing Director of Daibochi Plastic and Packaging Industry Berhad said:
“On the overseas front, we have begun delivering newly-secured orders to our customers in ANZ from the second quarter onwards.
At the same time, we believe that the domestic space is poised for a rebound, as indicated by the order trend from our Malaysia-based multinational and homegrown customers. Domestic sales in 1Q16 increased by about 12% q-o-q, which is the first double-digit expansion since the Goods and Services Tax came into effect last year.
The returning consumer sentiment is a positive signal for our customers, and subsequently for converters like Daibochi going forward. Meanwhile, we remain vigilant on challenges in human resource as well as increasing operating costs, and strive to mitigate them through improving our operational efficiency.”
Read the full press release here.
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