BP Plastics Delivered Profit After Tax (PAT) of RM15.5 million in FY 2011 despite Higher Raw Material and Energy Costs from massive global stimulus liquidity
Batu Pahat, 28 May 2012 – Massive global liquidity, high raw material and energy costs coupled with sudden demand disruption triggered by the energy shortage crisis after the tsunami incident in Japan weakened BPPLAS’ overall Y2011 performance. Not withstanding the above, BPPLAS still delivered a relatively fair Return on Equity (ROE) of 10.66% and prevailed over a challenging global business environment. Speaking at the Annual General Meeting, Mr Lim Chun Yow, Chairman and Managing Director, announced that BPPLAS Group had achieved marginal 1% revenue increase to RM222 million in FY2011 compared to revenue of RM221 million achieved in FY2010. Profit Before Tax (PBT) for the Group recorded a significant 21% decline to RM17.459 million in FY2011 compared to PBT of RM22.117 million achieved in FY2010. Mr. Lim further elaborated that this was mainly attributable to higher raw material input cost and increased operating expenditure as a result of global inflationary pressures on energy and commodity prices. Demand from one of the leading export markets, Japan, was affected due to supply chain disruption caused by serious energy supply shortage and nuclear plant shutdowns.
Mr Lim added the board’s aspiration is to distribute 20% to 40% PAT as dividends to shareholders, to improve shareholder value creation and reward existing shareholders’ continuous support. Since listing on Bursa Malaysia in 2005, the board has paid out dividend yearly, ranging from 30% to 47% PAT. A total of 47% PAT has already been paid out in respect of FY2011 and no final dividend is being proposed. In future, the board would consider adopting a more defined dividend policy, to distribute at least 30% of PAT to shareholders.
He also added that with the successful commissioning and production commencement of a 4th stretch film line, the group’s capability and capacity have improved further and is now capable in supplying thinner gauge products to cater to customers’ evolving needs, especially since more businesses are adopting environmental friendly approach to reduce carbon footprint. The group will also continue to focus and strive for better efficiency and productivity, pursue cost savings and reduction program to remain competitive.
BP Plastics Holding Bhd (“BPPLAS” or “Group”) is a leading producer of multi-layer cast stretch film and blown plastic film and bag, supplying throughout Malaysia and exports. Established in 1990, the Group began by supplying polyethylene bags to the garment and textile industries and today produces multilayer cast stretch film and high quality blown plastic film & bags for various industrial, commercial, logistic and warehousing usages. Listed on the Main Board of Bursa Malaysia in February 2005, BP Plastics has a wide customer base of over 680 companies in more than 32 countries worldwide.
Headquartered in Batu Pahat, Johor, the Group employs more than 350 staffs and operated more than 90 units of manufacturing machineries. BP Plastics Holding Bhd. is traded under the Bursa Malaysia Main Board symbol BPPLAS.
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BP Plastics Holding Bhd.
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