Can-One earnings slip to RM10.38m as profit margins fall

KUALA LUMPUR: Can-One Bhd's earnings fell 41.8% to RM10.38mil in the first quarter ended March 31, 2014 from RM17.85mil a year ago on lower gross profit margins from its cans and food products divisions.

It announced on Friday its revenue declined slightly to RM192.37mil from RM194.47mil. Earnings per share were 6.81 sen compared with 11.72 sen.

Revenue from general cans division for the quarter under review increased by 0.9% to RM91.3mil from RM90.5mil a year ago mainly due to higher sales of tin cans.

However, gross profit margin for the division fell from 11.8% to 8.0% mainly due to increase in raw material cost of resins.

Can-One said revenue from the food products division fell from RM119.6mil a year ago to RM116.8mil mainly due to water rationing which affected the production output, thus resulting in lower sales.

"Gross profit margin dropped compared to the previous quarter mainly due to higher operating and raw material costs," it said.

However, revenue from the international trading division increased from RM20.2mi a year ago to RM25.8mil.

Can-One also said its associate, Kian Joo Can Factory Bhd (KJCFB) contributed lower net profit of RM6.4mill to the group, down RM4.1mil from a year ago.

As for the remaining quarters of 2014, Can-One expected its operating division to contribute to its results although rising raw material cost, electricity cost and other operating cost would affect profit margin.

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