KUALA LUMPUR (Dec 19): NTPM Holdings Bhd’s net profit plunged 43% to RM9.2 million for its second financial quarter ended Oct 31, 2014 (2QFY15) from RM16.02 million a year ago, mainly due to higher cost of raw material, labour and utility.

Revenue for 2QFY15, however, rose 3% to RM138.09 million from RM133.65 million in 2QFY14, thanks to increased sales of baby diapers.

Earnings per share (EPS) for 2QFY15 dropped to 0.8 sen compared with 1.4 sen in 2QFY14.

For the six months period to Oct 31 (6MFY15), net profit plunged 42% to RM16.2 million from RM28 million a year ago, but revenue rose a marginal 2% to RM270.34 million from RM265.4 million in 6MFY14.

EPS for 6MFY15 stood at 1.4 sen, down from 2.5 sen in 6MFY14.

Going forward, NTPM expects a more competitive business environment due to mounting costs pressure and keen competition.

“Both the tissue and personal care segments will continue to operate in a tough environment as most of the fast moving consumer goods companies continue to shift their focus from protecting margins to increasing volumes," it said in a filing with Bursa Malaysia today.

“Meanwhile, the rise in labour and overhead costs is expected to dampen the group’s profitability further. The increase in electricity tariff rates in January this year and natural gas tariff in May will cause overhead costs to escalate and will affect the financial performance for the upcoming year,” warned the group.

To mitigate the impact from the challenging conditions, NTPM said it has put several cost-savings projects in place to control costs and lower wastage and inefficiencies.

The group is also looking into ways to strengthen its customer base and improve its distribution channel, and is exploring new products and opportunities to venture into new business segments.

NTPM shares rose 2.5 sen or 3.82% to close at 68 sen today, giving it a market capitalisation of RM763.76 million.