BPPLAS Sustaining Revenue Growth in FY2017
Batu Pahat, 30 May 2018 – In FY2017, backed by the Group’s enhanced machines’ capability and capacity, the Group has focused on promoting newly developed premium grade Machine Roll Cast Stretch Films, High Quality Thin Gauge “Infinity” Hand Roll Cast Stretch Films and Form-FillSeal (“FFS”) Food Packaging Film with printing. In addition, the Group is committed to supply innovative and competitive high quality products to deliver Right Packaging solution in primary, secondary and tertiary packaging. Packaging helps to improve food packaging integrity, improved production efficiency and achieve cost saving by strengthening palletized goods load holding to reduce product damages in logistic and warehouse activities.
The Group registered marginally higher operating revenue of RM328.56 million in FY2017, an increase of 1.29% compared to RM324.36 million in FY2016. Revenue growth in FY2017 was mainly supported by higher packaging films demand in Malaysian domestic market but this was offset by lower export sales, mainly due to competition and pricing pressure in main exporting markets.
The Group achieved a lower PBT of RM15.52 million, a decrease of 32.15% as compared to PBT of RM22.87 million in FY2016. PAT was also lower by 28.17% at RM12.83 million, compared to the PAT of RM17.87 million in FY2016. The lower PBT and PAT were mainly due to higher resin costs in the first half of FY2017 and the Group was unable to completely pass through the cost increased to its customers in order to maintain price competitiveness amidst the challenging and competitive business environment during that period.
The Group is committed to enhance shareholder value, and the Group’s dividend policy is to distribute at least 40% of net profits to shareholders annually, taking into consideration the Group’s available cash and cash equivalents, projected capital expenditures and other investment plans, after the distribution of a dividends. The total dividends declared and paid out by the Group for FY2017 amounted by RM7.51 million, representing a 58.5% dividend payout ratio (FY2016: 84.0%). At BPPLAS AGM held earlier today, Mr. Lim Chun Yow, the Managing Director also shared that the First Quarter results of FY2018 have been announced via Bursa LINK. For the 3 months ended 31 March 2018, the Group achieved slightly higher operating revenue of RM84.945 million, an increase of 0.73% compared to RM84.333 million in the corresponding period last year. The Group achieved a higher unaudited PBT for the period under review of RM6.776 million, an increase of 34.74% compared to unaudited PBT of RM5.029 million in the same period last year. Unaudited PAT for the period under review was also higher by 27.14% at RM4.614 million, compared to the unaudited PAT of RM3.629 million in the same corresponding period last year. The higher PBT and PAT achieved for the period under review were mainly due to better product mix and cost savings achieved from better production efficiencies. Mr. Lim further shared that the Board of Directors has declared a first Single Tier interim dividend of 2 sen per share in respect of FY2018. The entitlement date is fixed on 13 June 2018 and payment will be made on 27 June 2018. The Group remains prudent in assessing economic, social and geopolitical factors meanwhile continue to focus on its core business. The Group is committed to focus on product innovations to supply competitive high quality products, and to improve its cost management, internal process efficiencies and productivity to deliver the better business growth and performance. With all the above efforts, the Board expects to deliver profitable results for the financial year ending 31 December 2018.
For more information, please contact:
BP Plastics Holding Bhd.
Contact: 607-455 7633