Daibochi 3Q15 net profit surges 35% to RM6.8 million [PRESS RELEASE]
17 November 2015
- Driven by higher export sales and favourable product mix
- Targets more export sales in 2015 and 2016
- Declares 3rd interim single tier dividend of 3.5 sen per share in respect of FY2015, payable on 28 December 2015
Melaka, Malaysia, 17 November 2015 – Leading flexible packaging manufacturer Daibochi Plastic and Packaging Industry Berhad (Daibochi; 耐慕志; Bloomberg: DPP:MK; Reuters: DPPM.KL) saw net profit surge 34.7% to RM6.8 million for the third quarter ended 30 September 2015 (3Q15) from RM5.0 million previously, attributed to enhanced product mix and higher export volume.
3Q15 revenue rose 3.5% to RM86.0 million from RM83.1 million a year ago. Daibochi noted increased exports of new product innovations to the Australia and New Zealand (ANZ) market, which mitigated the minor decline in domestic revenue from multinational companies (MNC) and non-MNCs. Exports to ANZ and South East Asia made up 56% of 3Q15 revenue, growing significantly from 50% revenue contribution in 3Q14.
The Group also benefitted from the weaker Malaysian Ringgit versus the US Dollar, which contributed towards improved margins and foreign exchange gains.
Mr. Thomas Lim (林树坤), Managing Director of Daibochi Plastic and Packaging Industry Berhad said:
“Daibochi’s new product innovations are rapidly gaining traction with our MNC clientele. This opens up opportunities to replicate our successes with many of their business units in Asia Pacific, thus potentially according us a wider market share regionally.
Besides new product developments, we continuously invest into improving efficiency, most recently by establishing a working team to make recommendations on optimizing operational and production processes. We are confident that this would help us achieve better cost management and sustainable savings in the long run.
With these efforts, we are optimistic of future prospects, which would translate into commendable financial performance and shareholders’ value.”
Read the full press release here.
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