KUALA LUMPUR (May 14): Tien Wah Press Holdings Bhd fell into the red in its first financial quarter ended March 31, 2018 (1QFY18) with a net loss of RM2.42 million compared to a net profit of RM4.13 million a year ago, mainly due to the higher depreciation expense and depreciation costs.

In a filing with Bursa Malaysia today, Tien Wah said the investment of additional printing press and equipment as well as the delay in the closure of the Malaysian operation and establishment of commercial business in Dubai resulted in higher-than-anticipated operating cost.

Its quarterly revenue declined 26.13% to RM81.54 million from RM110.39 million in 1QFY17, due to reduction in non-tobacco revenue as a result of closure of the Australian operation, the strengthening of the Malaysian ringgit against the US dollar, sluggish demand in certain cigarette-related packaging products and the impact of adopting MFRS 15, which resulted in lower revenue recognition of RM3.3 million.

Tien Wah, which provides printing services for tobacco packaging, said it expects its operations to stabilise and improve going forward. Meanwhile, the group is in the final stages of restructuring and implementing its revised manufacturing footprint including shutdown of its Malaysian operation and the transfer of its equipment to Dubai.