Tomypak posts Q4 net loss on higher costs, lower sales and provisions

PETALING JAYA: Tomypak Holdings Bhd, a manufacturer of packaging materials, swung to a net loss in the fourth quarter ended December 31, 2017 on an increase in cost of goods manufactured, lower production volume and sales and provisions for stock.
The company posted a net loss of RM3.9 million for the quarter under review, compared with RM6.3 million for the corresponding quarter in 2016.
This was on 11% lower revenue of RM45.4 million, compared with RM51.2 million for the quarter ended December 31, 2016.
The group said in its filing the new Senai plant commissioned in the second quarter of 2017, is having two new major production lines installed, which is expected to start commercial production towards the third quarter of financial year 2018.
Two additional new major equipment are scheduled for delivery towards the end of third quarter of financial year 2018 and these should be ready for commercial production by the first quarter of financial year 2019.
The group said the commissioning of the equipment will be the final part of its expansion programme. Thereafter, it will focus on the final rationalisation of the two plants, efficient operation of all of these new and existing equipment as well as working with existing and new customers to secure new orders.
The board is cautiously optimistic that the next phase of growth for the group will be successfully implemented towards the end of FY 2018.
Net profit for the 12 month period ended December 31, 2017 almost halved to RM9.5 million, compared with RM18.4 million for the same period in 2016.
Revenue was slightly lower at RM204.3 million, compared with RM210.9 million for the same period in 2016.
The stock closed morning trade down half a sen to 97 sen with some 80,700 shares changing hands.