Evergreen Fibreboard 3Q net profit down 64.6% to RM5.35m

TheEdge Fri, Nov 23, 2018 06:33pm - 5 years View Original


KUALA LUMPUR (Nov 23): Evergreen Fibreboard Bhd’s net profit was down 64.6% to RM5.35 million from RM15.10 million a year earlier in its third quarter ended Sept 30, 2018 (3QFY18), on the back of costlier raw materials.

However, the group’s revenue for 3QFY18 increased by 10.9% or RM28.40 million to RM288.53 million, from RM260.13 million recorded in the preceding year’s corresponding quarter, mainly due to higher sales volume of the group’s products.

Earnings per share fell to 0.63 sen from 1.78 sen, according to the group’s filing with Bursa Malaysia today.

Meanwhile, profit before tax for the current quarter decreased by RM13.90 million to RM7.74 million, compared to a profit before tax of RM21.64 million recorded in the corresponding quarter of the preceding year.

This was mainly due to higher cost of raw materials, coupled with lower average selling prices as a result of severe competition from the region. However, the negative impact was reduced by insurance claim received as compensation of line stoppage last year.

For the nine months ended Sept 30, 2018 (9MFY18), Evergreen posted a 24.4% decrease in net profit to RM24.07 million from RM31.84 million a year ago.

Revenue for the cumulative period stood at RM842.62 million, versus RM768.62million.

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

“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 with heightened price competition.

Nonetheless, a stronger USD will help to mitigate some of the effects from pricing pressure. The group will remain focused on its endeavour to achieve higher production and cost efficiencies, despite the challenging environment,” Evergreen added.

Shares of Evergreen declined by 1 sen or 2.08% to 47 sen today, giving the group a market capitalisation of RM397.54 million. 

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