Muda Holdings 2Q net profit almost triples to RM11.49m

-A +A

KUALA LUMPUR (Aug 21): Corrugated carton maker Muda Holdings Bhd's net profit almost tripled to RM11.49 million in the second quarter ended June 30, 2018 (2QFY18) from RM4.13 million a year ago, on lower cost of waste paper and higher selling price of industrial paper, coupled with better selling price of paper packaging products.

This resulted in higher earnings per share of 3.77 sen for 2QFY18 compared with 1.35 sen for 2QFY17.

Its quarterly revenue rose 8.56% to RM353.81 million from RM325.90 million a year earlier.

For the cumulative six months ended June 30, 2018 (1HFY18), the company's net profit rose 22.08% to RM27.19 million from RM22.27 million a year ago, while revenue increased 12.88% to RM725.41 million from RM642.63 million in 1HFY17.

Muda Holdings said in a filing to the local bourse today that excluding the one-off impact of net compensation from an insurer for a fire of RM15.5 million in 1HFY17, its pre-tax profit would have improved about four times in the first half of 2018.

Moving forward, Muda Holdings said it is optimistic the group will be profitable for the second half of the year and will post a better performance in FY18 compared with FY17.

Muda Holdings' share price closed at RM1.96, down 10 sen or 4.85%, with 2.68 million shares done, bringing a market capitalisation of RM597.9 million.