Daibochi posts Q2 net earnings of RM14.63m

PETALING JAYA: Daibochi Bhd recorded net earnings of RM14.63 million for its second quarter ended Jan 31, 2020 on increased sales and improved operating efficiency as well as contribution from the group’s newly acquired subsidiary, flexible plastic packaging player Mega Printing & Packaging Sdn Bhd (MPP).

Revenue for the quarter came in at RM158.96 million, of which 55.31% was contributed from the domestic market. Exports made up the remainder of the group’s revenue.

There were no comparative figures, as the group changed its financial year end to July 31 from Dec 31.

For the six-month period, the group saw net earnings of RM25.61 million, on revenue of RM311.53 million.

Looking ahead, the group said it was now well positioned to support the increasing demand for sustainable flexible packaging solutions by major domestic and global brands in the food and beverage (F&B) and fast-moving consumer goods segments, following its integration into Scientex Group Bhd.

“We also continue to invest in new machinery and capacity, and had in February 2020 completed the set up of a new state-of-the-art bagging section in our Ayer Keroh plant.

“The new bagging section not only increases our capacity to cater to larger orders, but also features an integrated visitors walkway to showcase to our customers our capabilities, as well as stringent hygiene and quality control,” it said.

The group also successfully commercialised new flexible mono-material laminates for a prominent F&B brand in Malaysia in FY2020, and are expecting to commercialise several other packaging formats.

In light of the Covid-19 situation, Daibochi said it remains focused on its core business of sustainable packaging solutions, guided by its long-term strategy to enhance production efficiency and develop more sustainable products to remain competitive.