KUALA LUMPUR (Sept 21): Higher raw material cost continued to drag down NTPM Holdings Bhd's net profit, which fell 45.7% to RM6.58 million in the first financial quarter ended July 31, 2018 (1QFY19) from RM12.12 million a year ago.

This resulted in lower earnings per share of 0.6 sen for 1QFY19 from 1.1 sen for 1QFY18.

Quarterly revenue also fell 2.1% to RM172.4 million from RM176.15 million in 1QFY18, mainly due to the decrease in sales of tissue and personal care products, especially to local sales.

On prospects, NTPM expects market conditions to be more challenging in the financial year ending April 30, 2019 (FY19).

"Consumer demand is expected to remain weak and unstable in the short term.

"With its well-established product offerings, supported by its comprehensive distribution and marketing channels, the group foresees that it would continue to grow organically in its existing markets. With this in place, the board of directors is cautiously optimistic about its prospects," said NTPM.

It also said a key focus in FY19 for the group is to increase production of tissue paper in order to fulfil the increasing demand in Southeast Asia and other export markets.

NTPM shares closed 0.5 sen or 0.91% lower at 54.5 sen today, with 69,200 shares done, bringing it a market capitalisation of RM612.1 million.