Daibochi Q4 earnings up by a third to nearly RM8m

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KUALA LUMPUR: Daibochi Plastic and Packing Industry Bhd saw its earnings jump 33.7% to RM7.93mil in the fourth quarter ended Dec 31, 2017 boosted by new contributions from Daibochi Myanmar, improved wastage control, enhanced operating efficiency, and better sales mix.

It said on Monday the earnings were a strong improvement from the RM5.93mil a year ago. It announced a dividend of 1.3 sen a share compared with 1.32 a year ago.

Its revenue in Q4FY17 rose 16.9% to RM105.66mil from RM90.36mil. Its earnings per share were RM2.42 sen compared with 1.81 sen.

Daibochi said in Q4FY17 said the higher revenue was due to higher domestic and export sales, and new contributions from the Myanmar plant. Exports made up 55.5% of group revenue compared to 53.6% a year ago.

Group profit before tax (PBT) rose 53.7% to RM11.17mil from RM7.27mil a year ago due to its Myanmar operations, enhanced operating efficiency, and better sales mix. 

“These factors offset higher raw material costs in line with stronger global crude oil prices as well as the weaker ringgit versus the US$. 

“Excluding share of results of an associate of RM78,000, the Group’s core PBT jumped 48.0% to RM10.39mil from RM7.02 million previously. Meanwhile, core PBT margin improved to 9.8% compared to 7.8% in the previous corresponding quarter,” it said.

Daibochi’s Myanmar plant, under Daibochi Packaging (Myanmar) Company Ltd, recorded RM8.48mil in revenue and RM1.63mil in PBT respectively. Daibochi Myanmar’s PBT margin stood at 19.3% in the quarter under review due to its leaner cost operations.

In FY17, its earnings rose 5.9% to RM25.96mil from RM24.52mil in FY16.  Its revenue rose 4.7% to RM388.64mil from RM371.16mil mainly due to new contributions from Daibochi Myanmar.

Group PBT jumped 19.3% to RM35.74mil from RM29.95mil in FY16. Excluding share of results of an associate of RM1.16mil, core PBT rose 15.8% to RM34.59mil from RM29.86mil in FY16. The Group’s core PBT margin stood at 8.9% compared to 8.0% in the previous financial year.