- 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.
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