KUALA LUMPUR (March 23): Higher raw material prices dragged down NTPM Holdings Bhd's net profit by 35% to RM10 million or 0.9 sen earnings per share (EPS) in the third quarter ended January 2018.

For the corresponding period last year, its earnings amounted to RM15.5 million (1.4 sen EPS).

NTPM said a 6.23% year-on-year (y-o-y) improvement in revenue to RM181 million, from RM170.4 million, was due to an increase in tissue sales and personal care products.

It has declared a second interim single tier dividend of 0.8 sen per share for the financial year ending April 30, 2018, payable on April 23.

NTPM's net profit for the cumulative nine months was 30.27% lower at RM28.53 million or 2.5 sen EPS versus RM40.92 million or 3.6 sen EPS a year ago.

Its revenue grew 8.31% y-o-y to RM526.41 million from RM486.01 million.

NTPM said the board is "cautiously optimistic" about its prospects and that the group has strategic plans and control measures in place to mitigate the impact of higher cost driven inflation, spillover effects of the ringgit's depreciation on imported goods and services, and weak consumer sentiments.

"Several cost-savings projects have been identified and approved to improve the group's operational efficiency and (to) keep a tight rein on costs to drive down waste and inefficiencies across the group's business units.

"We are looking into ways to strengthen our customer base and improve our distribution channel," it said, adding it is also looking to develop new products and for opportunities to venture into new business segments should the expansion synergize with its current business model.

NTPM closed 1.5 sen or 2.78% lower at 52.5 sen today, for a market capitalisation of RM589.63 million.

Over the past year the stock has lost 36.21%.