KUALA LUMPUR (Nov 14): Tomypak Holdings Bhd (Tomypak) saw its net profit suffered in the third quarter ended Sep 30, 2014 (3Q14).

The flexible packaging manufacturer’s profit was almost halved to RM2.23 million year-on-year, from RM4.02 million the same period last year. Revenue for the quarter declined 11.6% year-on-year to RM51.57 million from RM58.3 million in 3Q13.

The company’s basic earnings per share (EPS) followed a similar downward trend for the period under review as it clocks in at 2.04 sen compared to 3.68 sen the same time last year.

Despite the decline in performance, Tomypak declares dividend of one sen per share, bringing the total amount of dividend for FY14 to four sen so far.

For the nine-month period, the company’s net profit was dismal. It fell 58.5% to RM4.55 million from RM10.99 million the same period last year.

Tomypak attributed the lower profits to lower sales in local market and a decline in profit margin due to competition in the export market. In addition, the company has also suffered from higher cost of production from higher energy and labour cost.

Similarly, its revenue fell to RM158.9 million in the nine-month period in FY14 from RM171.1 million for the same duration in FY13, representing a 7.13% decline.

EPS for the cumulative period was registered at 4.16 sen, contracting from the 10.05 sen recorded last year.

Despite the 3Q14 results, Tomypak is “confident” in ending the year on a higher note.

“The results of the fourth quarter is expected to be better than the current quarter,” said Tomypak in a filing with Bursa Malaysia.

“Moving forward, the group believes that the demand for the group’s products from the food and beverage sector will increase. With the anticipated growth in sales revenue, the Group had purchased an industrial land for future expansion purpose,” it added.

Tomypak’s share price has also progressively declined year-to-date, shedding 11 sen or 7.8%.  Today, it closed unchanged at RM1.30 to give it a market capitalisation of RM142.1 million.