NTPM issues profit warning

KUALA LUMPUR: NTPM Holdings Bhd, which saw its net profit tumble 93% to RM1.08mil in the first quarter ended July 31, has issued a profit warning.

NTPM said the group may not be able to maintain its profitability in the coming quarter in view of the current market conditions.

The board foresees that the group’s business operations environment will remain challenging and uncertain, the consumer goods and paper company said in the notes accompanying its financial statement.

NTPM said prices of raw materials, shipping costs, labour costs as well as the US dollar have increased and may go higher.

The group has increased its product prices progressively but it can only partially offset the increase in the cost of production with the constraint of market conditions, competitors’ pricing and our market share.

“The board will continue to monitor the changing business environment to ensure its installed production capacity can be optimally utilised.

“However, in the current market conditions, while the board expects the demand for paper and personal care related products to remain relatively stable, in the shorter term, the group may not be able to maintain its profitability in the coming quarter,” NTPM said.

In the first quarter ended July 31, NTPM’searnings per share for the period fell to 0.10 sen against 1.40 sen a year prior.

Revenue for the quarter rose 25% to RM217.2mil from RM173.8mil in the same quarter last year.

The higher revenue was due to the increase in sales of both tissue paper and personal care products.

NTPM has declared a first interim single tier dividend of 0.80 sen per share in respect of the financial year ending April 30, 2023. The ex-date for the dividend is on Oct 11 and payment is on Oct 28.

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