KUALA LUMPUR (Dec 16): Flexible packaging manufacturer Daibochi Bhd’s net profit for the first quarter ended Oct 31, 2020 (1QFY21) rose 16.51% to RM12.79 million from RM10.98 million a year ago, driven by higher sales to major consumer brands.

The group’s revenue for 1QFY21 grew 2.7% to RM156.68 million from RM152.56 million, led by contributions from packaging sales in the Malaysian market, which expanded 5.1% to RM88.5 million from RM84.2 million previously, its filing to Bursa Malaysia showed.

On a quarter-on-quarter basis, the group’s net profit grew 13.92% from RM11.23 million in 4QFY20, while revenue climbed 0.58% from RM155.77 million. The group did not declare any dividend for this quarter.

Going forward, the group remains cautiously optimistic that the current financial year would remain positive, driven by resilient demand for its innovative and sustainable flexible plastic packaging solutions.

Besides supporting the flexible packaging requirements of multinational corporations in the food and beverage (F&B) and fast-moving consumer goods (FMCG) sectors, the group is also moving towards developing new sustainable solutions and expanding capacity, said executive director Low Jin Wei in a separate statement.

“In addition to supporting increasing demands for sustainable packaging solutions, we also continue to fulfil the growing requirements for our existing packaging products. In this regard, we are well on track in our RM100 million capital expenditure programme to expand our production capacity by 60%.

“The expansions come in a timely manner to support our growth efforts, as we set sights on increasing our coverage of new product categories in the F&B and FMCG segments, as well as grow our customer base in Southeast Asia and Oceania,” he added.

Daibochi shares closed 5 sen or 1.92% higher at RM2.65 today, valuing the company at RM867.48 million.