BP Plastics posts record quarterly profit in 2QFY21, declares three sen dividend
KUALA LUMPUR (Aug 20): BP Plastics Holding Bhd, whose share price has been on uptrend since late May, posted record profit and revenue for the second financial quarter ended June 30, 2021 (2QFY21), of RM14.77 million and RM108.95 million respectively.
The latest quarterly net profit of RM14.77 million represented a 74.4% growth against RM8.47 million in the previous corresponding quarter.
This comes as the industrial plastic packaging producer enjoyed better demand across the board, led by the Asian market, as well as improved pre-tax margin of 17%, from 14% a year ago.
Quarterly earnings per share was booked at 7.87 sen, from 4.51 sen. The group has raised its dividend payout for the quarter to three sen per share, from two sen per share — bringing its half-year payout to six sen, compared with four sen a year ago.
In line with stronger demand in the quarter under review, quarterly revenue expanded by 35.7% to RM108.95 million from RM80.29 million, BP Plastics filing showed.
For the half-year period ended June 30 (1HFY21), the company’s net profit ballooned 66.4% to RM24.44 million or 13.02 sen per share, compared with RM14.69 million or 14.69 sen per share in 1HFY20.
Improved margins in the period under review supported speedier bottomline growth, where half-year revenue grew 32.4% to RM209.01 million, from RM157.89 million.
On prospects, BP Plastics anticipates achieving a fully vaccinated workforce in due course, and thus be able to resume 100% operating capacity as per government guidelines.
“The overall global packaging demand is expected to grow, along with recovery and reopening of the economy from the pandemic.
“Meanwhile, the group continues to focus on product innovation, improving on supply chain sources, upgrading facilities to support capacity expansion, and commissioning new machines to meet increasing demand of packaging products,” it said.
BP Plastics’ share price has surged nearly 40% from RM1.36 on May 24 to RM1.90 today. The company’s market capitalisation stands at RM347.16 million.