Evergreen Fibreboard 2Q profit up 93% on forex gain

TheEdge Fri, Aug 24, 2018 07:11pm - 5 years View Original


KUALA LUMPUR (Aug 24): Evergreen Fibreboard Bhd's net profit nearly doubled to RM11.96 million or 1.41 sen a share in the second quarter ended June 30, 2018 (2QFY18), from RM6.2 million or 0.73 sen a share last year, contributed by foreign exchange (forex) gain, versus a forex loss.

Quarterly revenue was also up 11.94% to RM289.92 million from RM258.98 million in 2QFY17 due to higher sales volume of the group's products, especially from a full commercial run of a particle board plant in Segamat, according to a filing with Bursa Malaysia today.

For the cumulative six months ended June 30, 2018 (1HFY18), Evergreen Fibreboard saw its net profit increased 11.88% to RM18.73 million or 2.21 sen a share, from RM16.74 million or 1.98 sen a share in the previous year. Revenue was 8.97% higher at RM554.09 million, from RM508.48 million in 1HFY17.

Moving forward, Evergreen Fibreboard said competition in the industry continued to heighten with new capacities being launched within the region, while demand for panel boards and furniture remains intact.

"Coupled with uncertainties generated from a possible full-fledged trade war between the two largest economies of the world, the group expects a more challenging operating environment in the second half of the year with heighten price competition," said Evergreen Fibreboard.

Nonetheless, a stronger US dollar will help to mitigate some of the effects from pricing pressure, said Evergreen, adding that production cost is expected to be lower thanks to falling log and glue prices.

Despite the challenging operating environment, the group expects satisfactory results in next quarter.

Evergreen Fibreboard shares closed 3.5 sen or 5.93% lower at 55.5 sen for a market capitalisation of RM469.44 million.

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