KUALA LUMPUR (Sept 25): Tissue paper maker NTPM Holdings Bhd's net profit for the first quarter ended July 31, 2020 (1QFY21) skyrocketed to RM14.64 million, from RM503,000 in last financial year's corresponding quarter.

In a bourse filing, the Penang-based company said the sharp rise in its quarterly net profit was mainly due to lower raw material costs, such as virgin pulp and waste paper prices, and overhead costs in 1QFY21.

However, its revenue declined by 3% year-on-year (y-o-y) to RM179.29 million, from RM184.89 million a year ago owing to lower sales for its tissue paper products.

On a quarter-on-quarter basis, its quarterly net profit was also substantially higher compared with RM4.08 million posted in 4QFY20. Its quarterly revenue declined by 11.1% from RM201.62 million.

"In the second quarter of 2020 (1QCY20), Malaysia's economy shrank by 17.1% y-o-y. The downturn was broad-based and largely reflected contractions in private consumption. Household spending fell at a record pace of 18.5% in [2QCY20] amidst a strict lockdown and deteriorating labour market (1QCY20: +6.7%).

"The Covid-19 pandemic presents significant challenges given the uncertainties it has created for businesses and the economy, especially for the travel, tourism and hospitality industry. In light of these challenges, the group will continuously take proactive measures to meet the changing environment and take necessary action to maintain sustainable growth in revenue and profitability. We are looking into ways to widen our customer base and expand our distribution channel.

"To date, the group has been able to take appropriate measures to ramp up its operations since the onslaught of Covid-19 and maintain its sound financial position. The group is therefore cautiously optimistic about its prospects," it noted on its prospects.

NTPM's share price rose 2.5 sen to 57 sen, valuing it at some RM640.22 million. It saw 2.14 million shares traded.