13 August 2015

Premalatha Jayaraman

Daibochi Plastic and Packaging Industry Bhd’s net profit increased 15.7% to RM7.2 million in the second-quarter (2Q) ended June 30, 2015, compared to RM6.2 million a year earlier, driven by higher export sales and favourable product mix.

The flexible packaging manufacturer’s revenue rose 3.1% to RM89.7 million for the quarter from RM87 million a year ago as exports contributed 52% of total revenue. The company added that the weaker ringgit helped export sales.

“The weaker ringgit enhances the competitiveness of export-oriented manufacturers like Daibochi. This is indicated by the steadily rising orders from our clients across SouthEast Asia, Australia and New Zealand,” said its MD Thomas Lim.

“This will also complement our long-term plans to enlarge export sales, at the same time taking on a greater role in supporting our clients’ aggressive growth plans in the region,” he added.

Daibochi declared a second interim single-tier dividend of four sen a share for the financial year ending Dec 31, 2015 (FY15), which is payable on Sept 29, 2015.

Together with an earlier paid dividend of 3.5 sen a share, the total dividend in respect of FY15 amount to 7.5 sen a share, translating into a payout of RM8.5 million or 63.6% of firsthalf net profit.

For the cumulative six months, the net profit increased 4.3% to RM13.4 million from RM12.8 million a year earlier, on the back of RM175.83 million of revenue.

Lim said Daibochi is on track to commercialise another new product for a multinational company’s (MNC) food and beverage (F&B) products in Asia Pacific in the 3Q which would further boost its export revenue.

In light of this positive development, he said the company is confident of achieving better financial performance in FY15.

Daibochi commercialised a new in-house innovation of sterilisable pouches for the MNC’s fast moving consumer goods (FMCG) products in Australia in 2Q.

The group manufactures flexible packaging for the F&B and FMCG sectors and has an established clientele comprising renowned MNCs such as Mondeléz International Inc, Nestlé SA, PepsiCo Inc and others.