Tien Wah Press Holdings Bhd made a profit for its second quarter ended June 30 this year (2Q18) due to the absence of expenses related to the cessation of its printing operations in Australia.
The printing and packaging company posted a net profit of RM3.81 million as against net loss of RM14.45 million incurred in 2Q17 in spite of revenue declining 15.2% year-on-year (YoY) to RM92 million for the period.
Tien Wah noted the lower turnover was due to the reduction of non-tobacco revenue arising from the closure of its Australian operations coupled with the stronger ringgit against the US dollar as the group’s revenue is mostly denominated in the US dollar.
For the first half of the year (1H18), Tien Wah’s operated at a net profit position of RM1.39 million compared to a net loss of RM10.32 million in the same corresponding period despite revenue falling 20.7% YoY to RM173.54 million.
Going forward, the company expects its operations to improve in 2H18 on completion of expansion of production facilities in Vietnam and Indonesia while the Dubai operations continue to develop.