BP Plastics 3Q profit grows 30.5%, plans three sen dividend
KUALA LUMPUR (Nov 22): BP Plastics Holding Bhd posted a 30.5% jump in net profit for its third quarter ended Sept 30, 2021 (3QFY21) to RM10.11 million from RM7.75 million in the corresponding period last year, thanks to strong revenue growth and a better product mix.
The polyethylene plastics film and bag manufacturer’s revenue for 3QFY21 improved 53.46% to a record high of RM113.31 million from RM73.83 million, amid stronger demand and higher selling prices, despite the strict movement restrictions imposed during the quarter.
The group is planning a third interim dividend of two sen per share and a special dividend of one sen per share, for a total three sen, to be paid on Jan 6, 2022, its bourse filings on Monday showed.
This brings its year-to-date total dividends declared to nine sen per share, versus six sen in the same period last year, and represents a 48.9% payout from its earnings, higher than its minimum 40% dividend policy, the group noted in a statement.
Compared to its immediate preceding quarter of 2QFY21, BP Plastics’ net profit was down 31.6% from RM14.77 million, despite revenue rising 4% from RM108.95 million, no thanks to higher raw material input costs and global supply chain disruptions.
As for its cumulative nine months ended Sept 30, 2021 (9MFY21), net profit grew 53.98% to RM34.56 million from RM22.44 million in 9MFY20, while revenue expanded 39.09% to RM322.32 million from RM231.73 million.
Going forward, the group said its effective tax rate is projected to be lower for FY21 due to the availability of reinvestment allowance.
Meanwhile, it updated that its proposal to undertake a bonus issue of up to 93,844,000 new shares on the basis of one bonus share for every two existing shares and its plan to issue up to 37,530,600 warrants on the basis of one bonus warrannt for every five existing shares held were approved by shareholders earlier on Monday at its virtual extraordinary general meeting.
Going forward, the group said it is continuing to focus on product innovation, improving supply chain sources and upgrading facilities to support capacity expansion.
“Despite the challenges ahead, the group expects to deliver a good and profitable performance for the financial year ending Dec 31, 2021,” it added.
BP Plastics shares traded six sen or 2.06% higher at RM2.97, giving it a market capitalisation of RM557.43 million.