Tien Wah returns to profit in 2Q after closing Australian ops

-A +A

PETALING JAYA (Aug 7): After four consecutive loss-making quarters, Tien Wah Press Holdings Bhd has returned to the black with a net profit of RM3.81 million in its second quarter ended June 30, 2018 (2QFY18), despite a 15% year-on-year decline in revenue to RM92 million.

In comparison, the group posted a net loss of RM14.45 million in the year-ago quarter, on a revenue of RM108.47 million, as it was impacted by the closure of its Australian printing operations and had to record a one-off redundancy expenses of RM20.3 million, and an asset impairment loss of RM11 million.

The y-o-y revenue decline was mainly due to the closure of the Australian ops, besides the strengthening of the ringgit against the US dollar, Tien Wah said in a Bursa Malaysia filing today.

For the cumulative six months (1HFY18), Tien Wah recorded a net profit of RM1.39 million, compared with a net loss of RM10.32 million in the year-ago period, though revenue retreated 21% to RM173.54 million, from RM218.86 million.

Tien Wah, which provides printing services for tobacco packaging, said it expects its operations to improve in the second half of the year, on completion of its production footprint expansion in Vietnam and Indonesia, while it continues to develop its Dubai operation.

Tien Wah’s shares price rose 3.42% or five sen to close at RM1.51 today, for a market capitalisation of RM218.56 million.