SLP Resources 2Q net profit down 57.84%, pays 1.5 sen dividend

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KUALA LUMPUR (Aug 4): SLP Resources Bhd posted a 57.84% decline in net profit for the second quarter ended June 30, 2017 (2QFY17) to RM2.56 million or 1.87 sen per share, from RM6.07 million or 2.45 sen per share in the prior year on higher costs of raw materials, which were mainly caused by higher average prices of plastic resins.

Its quarterly revenue was up 2.53% at RM43.23 million from RM42.16 million a year ago due to higher domestic sales of flexible plastic packaging products, in line with higher demand for food packaging products from domestic customers.

In a filing to Bursa Malaysia today, the group declared a first interim dividend of 1.5 sen per share for the financial year ending Dec 31, 2017 (FY17), payable on Oct 5.

For the cumulative six months of FY17, its net profit fell 40.55% to RM6.63 million or 3.93 sen a share compared to RM11.15 million or 4.51 sen a share a year ago. Meanwhile, its revenue was 2.74% higher at RM89.21 million from RM86.84 million last year.

Going forward, SLP Resources said the group would be focusing on strengthening operational and financial performance by continuing the implementation of a series of process improvement and ongoing expansion plans to achieve better overall operational and cost efficiency.

"With this in place, the group expects to deliver satisfactory financial results for the rest of the financial year ending 2017," said SLP Resources.

Shares in SLP Resources closed up two sen or 0.84% at RM2.41 today for a market capitalisation of RM636.56 million.