Daibochi Bhd, formerly Daibochi Plastic and Packaging Industry Bhd, posted lower net profit in the second quarter (2Q) ended June 30, 2018, due to higher material cost.
In an exchange filing yesterday, the packaging product maker noted net profit eased 7.8% year-on-year (YoY) to RM4.65 million impacted by higher key raw material costs particularly for solvent and polyester film.
Revenue rose by 22.5% YoY to RM106 million on higher domestic and export sales and new contribution from the Myanmar plant that commenced operations on July 1, 2017 and recorded RM8.99 million and RM1.01 million in revenue and pre-tax profit respectively.
The group expects an increase in contribution from its Malaysia and Myanmar plants and ongoing efforts to enhance efficiency and reduce wastage.
Daibochi declared a second interim single tier dividend of 0.80 sen for FY18, payable on Sept 27, 2018.