21 October 2014

• 9M14 revenue rises 13.2% to RM260.5 million; higher utility and labour costs impact profitability
• Declares 3rd interim dividend of 2.5 sen

Melaka, Malaysia, 21 October 2014 – Leading flexible packaging manufacturer Daibochi Plastic and Packaging Industry Berhad (Daibochi; 耐慕志; Bloomberg: DPP:MK; Reuters: DPPM.KL) anticipates its customer base expansion to drive the Group’s revenue growth.

Mr. Thomas Lim (林树坤), Managing Director of Daibochi Plastic and Packaging Industry Berhad said:

“The year to date has been challenging for the domestic flexible packaging industry due to increased operating costs, particularly utilities and wages. Additionally, we noted a change in order profile in the quarter under review, where we ran more small-volume orders, resulting in lower production efficiency.

In mitigating this, we have accelerated our efforts to boost productivity even further by reducing wastage, and installing industrial electricity savers (e-Savers) for our key machinery to achieve better energy efficiency. By end-2014, we would have equipped our manufacturing lines with 42 units of the e-Savers, which will reduce our electricity consumption in the long run.

We believe that the Group’s long-term prospects remain intact, as the Group would soon reap the benefits of its drive towards expanding our customer base, promoting higher-value packaging and adopting cost-mitigating measures. With these measures, we are hopeful of improving the Group’s long-term profitability.”

Read the full press release here.