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apple developer(buyappleacc.com):Daibochi posts 22.7% decline in FY21 operating profit

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,KUALA LUMPUR: Impacted by disruptions to its operations and lower customer demand, Daibochi Bhd recorded a 22.7% drop in operating profit for the financial year ended July 31, 2021, to RM52.19mil from RM67.52mil previously.However, profit attributable to owners of the company decreased a marginal 1.3% to RM47.03mil from RM47.67mil previously given the applicable tax incentives derived from the group's ongoing expansion.Revenue for the financial year was RM601.87mil, 2.81% lower than in the previous year.In a filing with Bursa Malaysia, Daibochi said the decline in operating profit was mainly owing to higher raw material prices and freight costs as well as additional expenses incurred in compliance with the various containment measures."Although the country is gradually resuming economic activities under the National Recovery Plan, the fact remains that the operating landscape for the manufacturing sector remains very volatile," said Daibochi executive director Low Jin Wei in a statement.He added that the group continues to incur increased expenses in line with the Covid-19 compliance and face higher freight costs and volatility in raw material prices.However, the group has largely avoided supply chain issues due to its stable and reliable supply of raw materials from Scientex, a major purchaser of plastic resins."We endeavour to assure our clients in the essential F&B and FMCG sectors of our ability to reliably produce and deliver FPP products to facilitate customers' timely go-to market. Therefore, we are striving very hard to achieve operational stability and resume our growth path," Low said.Meanwhile, Low said the group is continuing long-term efforts in developing and commercialising systainable FPP solutions jointly with Scientex to align itself with customers' environmental, social and governance goals.In Myanmar, the group continues to monitor its operations, which continues to face uncertainty given the political impasse, devaluation of the Myanmar Kyat and escalating raw material costs.In 4QFY21, Daibochi posted a 20.83% decline in net profit to RM8.89mil compared to RM11.23mil in the year-ago quarter.Revenue for the quarter was also lower at RM133.73mil versus RM155.77mil in the previous corresonding quarter.
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