04 December 2016

Daibochi Plastic and Packaging Industry Bhd said strong growth from its exports helped it posted a revenue of RM97.03 million in the second-quarter ended June 30, 2016 (2Q16), versus RM89.7 million a year ago for the same period.

In a filing to Bursa Malaysia yesterday, the packaging product maker noted export sales grew 20% as demand came from Asean region and Australia.

Net profit however declined to RM6.08 million or 2.23 sen a share in 2Q16 compared to RM7.19 million or 2.64 sen a share a year ago, due to higher operating costs, particularly due to the effects of the revised wage policy implemented by the group since Jan 1, 2016.

The lower profitability was also due to higher operating expenses such as repairs and maintenance and air freight for a new product launch, product mix and increased wastage. The company declared a 1.33 sen second interim single-tier dividend.