Daibochi posts record RM47.7mil FY20 net profit on resilient demand

  • Corporate News
  • Thursday, 17 Sep 2020

KUALA LUMPUR: Daibochi Bhd posted its highest-ever net profit of RM47.7mil in its financial year ended July 31, 2020, on the back of revenue of RM619.3mil owing to resilient demand for flexible plastic packaging (FPP) in the food and beverage and fast-moving-consumer-goods sectors.

The FPP manufacturer recorded net profit of RM11.2mil in the fourth quarter of the financial year on the back of RM155.8mil revenue, which were quarter-on-quarter increases of 2.5% and 3.6% respectively.

A comparison to the previous corresponding quarter and year were unavailable due to the change in the group's financial year from Dec 31 to July 31.

Daibochi proposed a final dividend of three sen per share, which would bring total dividends for the financial year to five sen per share, representing RM16.4mil or 34.3% net profit for FY20.

"Our strong performance in FY2020 reflects our substantial exposure to the essential consumer goods such as food and other staples, which remain high in demand despite Covid-19’s impact on global consumer sentiment," said Daibochi executive director Low Jin Wei.

He added that the group is making progress in its RM100mil capital expenditure from FY20 to FY21, which involves the purchase of new machines to boost annual production capacity by about 60%.

"Our prospects are further bolstered by increasing demand for sustainable packaging solutions by MNCs and other prominent brands in Malaysia and regionally, in line with global sustainability trends.

"Our joint research and development prowess with Scientex positions us strongly to capture more opportunities in this nascent but promising area, and we are looking to commercialize more sustainable solutions with our clients in the near future,” he said.
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