Box-Pak 2Q loss widens four-fold amid operational loss in Myanmar, impairments

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KUALA LUMPUR (Aug 21): Box-Pak (M) Bhd continues to bleed, hurt by its Myanmar operations and doubtful debts as its net loss widened more than four fold year-on-year to RM7.41 million or loss per share of 6.18 sen in its second quarter ended June 30, from RM1.71 million or a LPS of 1.43 sen previously.

Box-Pak attributed its poorer performance to an initial operating loss of RM3.5 million in Myanmar and impairment of doubtful debts amounting to RM2.4 million during the quarter.

However revenue for the quarter rose 5.93% year-on-year to RM157.66 million from RM148.83 million.

For the cumulative six months, net loss jumped 79.83% to RM13.87 million from RM7.71 million a year ago. Revenue was 7.12% higher at RM307.56 million from RM287.12 million before.

Looking ahead, Box-Pak said the competitive environment, coupled with currency volatility — the exchange rate between USD and ringgit — also poses a risk. “The new plant in Myanmar commenced operation in the first quarter of 2019. Since this is a greenfield project, the group can only anticipate positive contribution from this plant in 4 to 5 years upon commencement of operation.”

Box-Pak shares were untraded today. Last traded at RM1.15, the company is valued at RM138.05 million.