Daibochi revenue dips 2.8% to RM601.9 million in FY2021 [PRESS RELEASE]

• Aims to assure domestic brandowners and multinational corporation (MNC) customers of ability to provide reliable delivery of flexible plastic packaging (FPP) for essential segment
• Operating profit declines 22.7% to RM52.2 million, but maintains net profit of RM47.0 million

Melaka, Malaysia, 28 September 2021 – Flexible packaging manufacturer Daibochi Berhad (Daibochi; 耐慕志; Bloomberg: DPP:MK; Reuters: DPPM.KL) reported a 2.8% dip in group revenue to RM601.9 million in the financial year ended 31 July 2021 (FY2021) from RM619.3 million previously, as operating profit declined sharply by 22.7% to RM52.2 million from RM67.5 million a year ago.

Nonetheless, FY2021 net profit was maintained at RM47.0 million in FY2021, compared to RM47.7 million a year ago.

Daibochi cautioned of challenging market conditions in the upcoming financial year ending 31 July 2022 (FY2022), in light of operational restrictions and increased COVID-19 Standard Operating Procedure (SOP) compliance costs, resulting in less-than-ideal production efficiencies due to process disruption, and higher costs of goods namely raw materials and freight.

Although 97% of Daibochi’s Malaysia-based employees were deemed fully vaccinated by September 2021, the Group plans to further mitigate its operation and business risk to ensure its supply chain commitments to customers remains uninterrupted.

To read the full press release, please click here.