This article first appeared in The Edge Financial Daily on February 22, 2018

KUALA LUMPUR: Box-Pak Malaysia Bhd posted its fifth loss-making quarter in the fourth quarter ended Dec 31, 2017 (4QFY17). However, its quarterly net loss narrowed to RM817,000 from RM6.28 million a year ago, supported by other income gains and deferred taxation in the period.

Loss per share for the corrugated carton boxes manufacturer shrank to 0.68 sen, from 10.46 sen in 4QFY16. Also supporting the numbers, said Box-Pak in a filing with Bursa Malaysia yesterday, were reductions in general and administrative expenses, offset by higher costs for raw materials.

Quarterly revenue grew 12.63% to RM150.35 million from RM133.5 million a year ago — thanks to upward adjustments in average selling price (ASP) to partially absorb the higher costs, said Box-Pak.

However, Box-Pak’s net loss for the full financial year ended Dec 31, 2017 (FY17) ballooned to RM15.35 million from a mere RM853,000 the year before, mainly on higher costs incurred — paper costs for the full-year period was higher “by at least 20%” compared with that in FY16, it said.

Revenue, however, rose 10.39% to RM552.75 million from RM500.71 million in FY16.

“The main challenge faced by the group in FY17 was the sharp and continuous rise in paper cost. This will continue to affect the group’s performance in the coming financial year,” it said.

“Faced by these cost pressures, the management will continue reviewing its selling price to key customers while stepping up its efforts to bring down its operating costs in 2018.”