6 May 2011

KUALA LUMPUR: Packaging manufacturer Daibochi Plastic and Packaging Industry Bhd’s net profit in the first quarter ended March 31, 2011 (1QFY11), shrunk 7.4% to RM4.6 million from RM5 million the year before, on the back of higher raw material prices.

However, the company said revenue for the period improved as it successfully passed on rising input prices to customers. “The 1QFY11 results are commendable, given the continually challenging operating environment as a result of the increasing raw material prices,” said managing director Thomas Lim.

Revenue for 1QFY11 grew 13.4% year-on-year (y-o-y) to RM67.7 million from RM59.7 million. “The higher group revenue was mainly attributed to its packaging segment, which increased 9.9% to RM65.1 million in 1QFY11 from RM59.2 million in 1QFY10, as a result of the upward-adjusted selling prices in response to the increasing costs of raw materials,” the company said yesterday.

“Notwithstanding unabated concerns on the sharp price uptrend in plastic films, industry statistics have indicated that the global flexible packaging industry is still set to witness exponential growth in the near term, with the Global Industry Analysts projecting for the global market to be worth US$70.15 billion (RM209.7 billion) by 2015, led by Asia’s emerging
economies.”