KUALA LUMPUR (Nov 4): SLP Resources Berhad's net profit fell 33.9% to RM6.2 million in the third quarter ending on Sept 30, 2016, from RM9.39 million share a year ago.

Revenue also fell 4% to RM40.9 million, from RM42.6 million against the corresponding quarter, due to decline in its domestic sale of polymer products, in line with slower domestic demand and stricter credit control on domestic customers.

It also announced a 1.5 sen second single-tier interim dividend for the period, payable on Jan 6.

For the nine-month period, its net profit dropped by 14.3% to RM17.3 million, from RM20.3 Million.

However, revenue increased by 0.9% to RM127.8 million, from RM126.6 million. Despite stable group revenue for the nine-month period ended Sept 30, 2016 (9MFY16), the group’s PBT was RM5.8 million or 22.2% lower at RM20.5 million, as compared with RM26.3 million in the same period last year.

This was largely due to net loss in foreign currency exchange of RM0.3 million in 9MFY16.

In contrast, the group recorded a net gain in foreign currency exchange of RM6.3 million in the same period last year.

Looking ahead, the group expects the economic environment to remain challenging, particularly the impact of increase in minimum wages in Malaysia, effective July 1, 2016.

With new product development and capacity expansion, the group expects to achieve higher sales volume for the remaining financial quarter and deliver satisfactory financial results for the financial year ending Dec 31, 2016 (FY16).