KUALA LUMPUR (Dec 7): Plastic packaging producer Daibochi Bhd saw its net profit in the first quarter ended on Oct 31, 2021 (1QFY22) decline by 23.37% to RM9.8 million from RM12.79 million a year ago, mainly due to higher raw material prices, freight cost and Covid-19 related expenses.

As a result, earnings per share fell to 2.99 sen from 3.91 sen.

According to a Bursa Malaysia filing on Tuesday (Dec 7), its quarterly revenue, however increased by 15.09% to RM180.32 million from RM156.68 million, driven by higher sales in its both domestic and export markets.

The group has also declared a single interim dividend of 2.5 sen per share to its shareholders, to be paid on Jan 10, 2022. The group did not declare any dividend for 1QFY21.

On a quarterly basis (q-o-q), the group’s net profit increased by 10.27% from RM8.89 million reported in the immediate preceding quarter (4QFY21) while revenue rose by 34.94% from RM133.73 million registered in 4QFY21.

Moving forward, the group remains committed as a trusted provider of sustainable and innovative flexible plastic packaging (FPP) solutions to major domestic and global F&B and fast moving consumer goods (FMCG) brands amidst a challenging business landscape.

“The group remains focused to develop innovative and sustainable FPP to resonate with market trends and meet brand owners’ evolving sustainability requirements.

“Global supply chain disruptions such as volatility of supply and raw material prices, container issues and vessel delays impacted the group’s ability to service its customers, resulting in longer lead times.

“Accordingly, the group will continue to work closely with its suppliers and customers to mitigate and manage these operational challenges to ensure that its commitment to both domestic and overseas brand owners remain uninterrupted,” it said.

The group added that its manufacturing operations in Myanmar continue to experience uncertainties due to the country’s socioeconomic and political climate amidst the backdrop of Covid-19.

“In this regard, the group is continuing to actively monitor and manage its operations prudently to minimise any material adverse impact on its business,” it said.

At noon break on Tuesday, shares in Daibochi finished unchanged at RM2.52, valuing the company at RM826 million.