KUALA LUMPUR: Packaging maker Daibochi reported steady earnings in the Feb-April quarter, but cautioned that higher freight rates and rising raw material prices could dampen outlook.
Net profit in the third quarter ended April 30 slipped to RM10.25mil from RM10.8mil a year ago.
Revenue was little changed at RM150mil, it said in a filing today.
“Demand for flexible plastic packaging (FPP) in the food and beverage (F&B) and fast-moving consumer goods (FMCG) sectors remains resilient alongside the region’s population growth and urbanisation, as well as consumers’ preference for convenience and environmentally friendly packaging,” Daibochi said.
However, “higher freight costs and rising raw material prices in the global markets may continue to weigh on prospects,” it added.
Daibochi said the company has a stable and reliable supply of raw materials from Scientex, a major purchaser of plastic resins, which would help manage supply chain issues.
Scientex is the controlling shareholder of Daibochi.