Daibochi’s Q1 earnings up 16.5%

TheStar Thu, Dec 17, 2020 09:10am - 2 months ago


“We have commercialised various sustainable flexible packaging products through joint research and development with Scientex and our multinational clients, comprising mainly mono-material laminates that are 100% recyclable, ” Daibochi executive director Low Jin Wei said.

PETALING JAYA: Daibochi Bhd saw its net profit grow 16.5% to RM12.8mil for its first quarter ended Oct 31,2020, from RM11mil in the corresponding quarter a year ago, thanks to higher sales to major consumer brands.

During the quarter in review, the flexible packaging manufacturer’s revenue rose 2.7% to RM156.7mil from RM152.6mil in the previous corresponding period, led by contributions from packaging sales in the Malaysian market.

Its earnings per share rose to 3.91 sen from 3.35 sen previously.

In a statement, Daibochi said its domestic market expanded 5.1% to RM88.5mil from RM84.2mil previously, while exports remained largely unchanged at RM68.2mil versus RM68.3mil previously.

According to Daibochi executive director Low Jin Wei, the group is on track to complete its RM100mil expansion plans to boost annual production capacity by 60%.

“We are well on track in our RM100mil capital expenditure programme to expand our production capacity by 60%, ” Low said.

“The expansion comes in a timely manner to support our growth efforts, as we set sights on increasing our coverage of new product categories in the food and beverage (F&B) and fast-moving consumer goods (FMCG) segments, as well as grow our customer base in South-East Asia and Oceania.”

Daibochi remained focused on strengthening its reputation as a key supplier of innovative and sustainable flexible plastic packaging solutions as it continues to expand its markets within the South-East Asia and Oceania regions.

It noted the demand for its products, deemed as essential components in the essential F&B packaging supply chain, had remained relatively strong for the period under review.

Low said while the group remained resilient in supporting flexible packaging requirements of MNCs in the F&B and FMCG sectors, it was also paving the path forward by developing new sustainable solutions and expanding capacity.

“We have commercialised various sustainable flexible packaging products through joint research and development with Scientex and our multinational clients, comprising mainly mono-material laminates that are 100% recyclable, ” he said.

“In addition to supporting increasing demands for sustainable packaging solutions, we also continue to fulfil the growing requirements for our existing packaging products, ” he added.

Daibochi’s shares closed half a sen up at RM2.65 yesterday.






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