PETALING JAYA: Daibochi Bhd saw a net loss of RM305,000 for the three-month period ended July 31, 2019 due to writedown in line with ongoing operations streamlining and merger & acquisition (M&A) costs for the purchase of Mega Printing & Packaging.
However, it recorded the best quarterly revenue of RM123.28 million on the back of increasing flexible packaging sales in Malaysia and regional markets.
According to the group’s filing with Bursa Malaysia, the recognised inventories written down amounted to about RM5.71 million along with a one-off M&A related transaction costs amounting to about RM1.14 million.
For the cumulative 19-month period from Jan 1, 2018 to July 31, 2019, Daibochi reported a net profit of RM17.3 million with RM699.34 million in revenue.
Its financial year end has been changed to July 31 from Dec 31 to coincide with the financial year end of its holding company Scientex Bhd.
Daibochi said its expanded portfolio with the acquisition of MPP in August 2019 will further complement the group’s existing flexible packaging solutions and the enlarged manufacturing footprint will put it in a better position to capture new growth opportunities.
Commenting on its future prospects, Daibochi is confident that its ongoing optimisation efforts and the enlarged manufacturing operations will result in strong revenue performance and improved profitability for the coming financial year.
Group managing director Thomas Lim said as it now operates under the Scientex fold, the group has adopted a just in time model and are in the process of integrating its operations to Scientex’s SAP system, which would significantly boost operating efficiency.
