13 August 2015

PETALING JAYA: Daibochi Plastic and Packaging Industry Bhd posted 15.7% higher net profit of RM7.2 million for the second quarter ended June 30, 2015 (2Q15) from RM6.2 million a year ago, benefiting from higher export sales and favourable product mix.

Revenue for the flexible packaging manufacturer rose 3.1% to RM89.7 million, from RM87 million a year ago with exports contributing 52% of the turnover.

Daibochi also benefited from the weaker ringgit, which further enhanced 2Q15 performance on the back of higher export sales.

“The weaker Malaysian 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. This would 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,” managing director Thomas Lim said.

He added that the company 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 third quarter of 2015, which would further boost its export revenue.

“In light of this positive development, we are confident of achieving better financial performance in FY15,” Lim said.

Daibochi declared a second interim single tier dividend of 4.0 sen per share with respect to the financial year ending Dec 31, 2015 (FY15). The dividend is payable on Sept 29, with an ex-date of Sept 3.

Together with an earlier paid dividend of 3.5 sen per share, total dividends with respect to FY15 amount to 7.5 sen per share, translating into a payout of RM8.5 million or 63.6% of 1H15 net profit.

Commenting on the group’s outlook, Lim said that the group remains vigilant of ongoing uncertainties in the business environment, such as foreign exchange volatility and fluctuating crude oil prices.

To mitigate these issues, Daibochi intends to focus on enhancing operational and cost efficiency, which are crucial towards strengthening long term business sustainability.

“Additionally, we will continue to emphasise on research and development, which allows us to introduce new innovations that provide our clientele with an edge in product packaging. To date, our efforts have been translated into tangible financial results, as we are able to secure new businesses from existing as well as new clients,” Lim added.