Daibochi Q4 earnings jump 33.7%

PETALING JAYA: Daibochi Plastic and Packaging Industry Bhd’s net profit jumped 33.7% to RM7.93 million in the fourth quarter ended Dec 31, 2017, from RM5.93 million in the previous corresponding quarter.
The higher net profit was attributed to new contributions from its Myanmar plant, improved wastage control, enhanced operating efficiency, and better sales mix, it told the stock exchange today.
Revenue for the quarter grew 16.9% to RM105.66 million, compared with RM90.36 million in the same period a year ago, due to higher domestic and export sales, and contributions from the Myanmar plant.
On its prospects, Daibochi said it is optimistic on achieving strong growth in the financial year ending Dec 31, 2018 as both Daibochi Malaysia and Daibochi Myanmar are expected to perform strongly.
As for the group’s operations, Daibochi said it continues to focus on enhancing efficiency by investing in new machinery, reviewing manufacturing processes for cost savings and wastage reduction opportunities.
“Barring unforeseen circumstances, the group is confident in setting a higher pace of growth and expanding profit before tax margins in 2018,” it added.
Daibochi declared a fourth interim single tier dividend of 1.30 sen for the financial year ended Dec 31, 2017. It will be paid on March 21, 2018.
For the full year, its net profit increased 5.9% to RM26 million, from RM24.5 million in FY16, while revenue up 4.7% to RM388.6 million, against RM371 million previously.