KUALA LUMPUR (May 17): Evergreen Fibreboard Bhd returned to the black with a net profit of RM9.64 million for the first quarter ended March 31, 2021 (1QFY21), against a net loss of RM12.15 million a year ago. Revenue grew 2.55% to RM233.22 million from RM227.41 million.

The wood panel products maker attributed the better performance to higher revenues from downstream products, higher average selling prices for panel boards, and lower operational costs as a result of higher production efficiency and foreign exchange gains.

The performance was also significantly better compared with the preceding quarter (4QFY20) when the group reported a net loss of RM78.49 million on a revenue of RM233.24 million.

In a abourse filing, Evergreen said the loss recorded for 4QFY20 was caused by a non-cash one-off event from the write-off and impairment of plant and machinery and inventories.

To manage pandemic-driven shortages in shipping capacities, the group said it has focused on local markets for its panel board production facilities in Malaysia and Indonesia, thereby relieving some of the logistical pressure on downstream products which are exported to meet growing demand in economies like the US.

"Aside from limited shipping availability, other challenges include rising raw material prices, weakening outlook of US dollar, shortage of labour and cautious management of operations to reduce the risk of spread of Covid-19 in its premises," it added.