KUALA LUMPUR (June 25): Higher raw material cost continued to drag down the net profit of NTPM Holdings Bhd, falling 86.8% to RM1.18 million for the fourth financial quarter ended April 30, 2018 (4QFY18) from RM8.95 million a year ago.
 
This resulted in a lower earnings per share of 0.11 sen for 4QFY18 from 0.8 sen for 4QFY17.

Quarterly revenue, however, was up 3.3% to RM164.52 million from RM159.25 million in 4QFY17, mainly due to the increase in sales of tissue and personal care products.

The group also proposed a final dividend of 0.8 sen per share for the financial year ended April 30, 2018 (FY18), which will be recommended to the shareholders for approval at the forthcoming annual general meeting.

For the full FY18, NTPM's net profit fell 40.4% to RM29.71 million from RM49.87 million in FY17, despite recording a 7% increase in revenue to RM690.93 million compared with RM645.52 million.

On prospects, NTPM said it has put in place strategic plans and control measures to mitigate the impact of an expected adverse conditions in the economy, arising from the higher costs driven by inflation, spillover effects of the ringgit's depreciation on imported goods and services, and weak consumer sentiment.

"In addition to the price increase to its products, several cost-savings projects have been identified and approved to improve the group’s operational efficiency and keep a tight rein on costs to drive down waste and inefficiencies across the group’s business units," it said.

Besides that, NTPM is also looking into ways to strengthen its customer base and improve distribution channels.

"The group is also looking at developing new products and opportunities to venture into new business segments if the expansion synergizes with the group’s current business model," it added.

Shares of NTPM closed unchanged today at 58.5 sen today, bringing it a market capitalisation of RM657.07 million. Year-to-date, the stock has fallen 8.6%.