Daibochi's net profit down 6.3%

KUALA LUMPUR: Daibochi Plastic and Packaging Industry Bhd’s (Daibochi) net profit fell 6.3% to RM6.18mil for first quarter ended March 31, 2015, from RM6.60mil due to decline in turnover, sales mix and increase in depreciation and labour costs.

Similarly, its revenue for the quarter dropped 4.6% to RM86.15mil compared to RM90.39mil for the corresponding period a year ago was largely due to a slowdown in demand from its exports markets and multinational company (MNC) customers in the ASEAN region.

“Export sales represented 47% of group revenue in the current quarter under review, a reduction from 53% in the previous year,” Daibochi said in a filing to Bursa on Thursday.

Moreover, it added that the export orders for two new product lines expected to happen in the first quarter of this year have been delayed to the second and third quarter of this year.

Going forward, the company noted that it is focusing on improving its operations to have better control over waste.

“Daibochi is cognizant of ongoing challenges arising from volatility in currency exchange rates and raw material prices,” it noted.

Meanwhile, Daibochi said that in the long run, it is also focussing on increasing its operational efficiency to optimise its operational costs.

“We are also looking into new opportunities from our MNC clientele, mainly representing exports to Australia, New Zealand and the ASEAN region,” it noted

Hence, for the current financial year,  the company is positive on achieving a record turnover.