KUALA LUMPUR: SLP Resources Bhd
expects geopolitical tensions in the Middle East and volatile petrochemical prices to continue posing challenges, but will focus on strengthening its supply chain and accelerating new product commercialisation.
The plastic packaging solutions group said global feedstock supply chains and logistics services are expected to remain under pressure until geopolitical conditions stabilise.
It added that maintaining stringent credit controls remains a key priority to support sustainable business growth and mitigate financial risks.
“Despite these challenging business conditions, the group remains committed to strengthening its supply chain resilience and security to ensure uninterrupted product availability and reliable service to its customers.
“The group will also continue to pursue new products development and accelerate the commercialisation of these innovations to drive growth and enhance its financial performance in FY2026,” SLP said in the notes accompanying its financial results.
In the second quarter ended June 30, SLP’s net profit surged to RM5.9mil, or earnings per share of 1.88 sen compared with RM1.7mil, or 0.55 sen.
The improvement was mainly driven by better product mix and
favourable average selling price arising from the Middle East conflict.
Quarterly revenue fell 13.9% to RM34.2mil from RM39.8mil a year earlier, mainly due to weaker domestic demand following the group's stricter credit control measures, despite stronger demand driven by the Middle East conflict.
For the first half, it posted a net profit of RM8.6mil, up 71.8% from RM5mil, while revenue dipped 16.15% to RM67.8mil against RM80.8mil a year prior.
The board declared a second interim dividend of 1.25 sen per share for the financial year ending Dec 31, 2026. The dividend will be paid on Oct 7 to shareholders on the record of depositors as at Sept 17.
