Friday 29 Mar 2024
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KUALA LUMPUR (April 27): Tien Wah Press Holdings Bhd saw its net profit for the first quarter ended March 31, 2016 (1QFY16) more than doubled to RM5.6 million from RM2.09 million a year ago, mainly due to the strengthening of the US dollar.

In its quarterly performance bourse filing today, it said significant improvement in productivity and waste reduction, besides the absence of redundancy expense of RM6.9 million, which was incurred in the first quarter of 2015 due to a restructuring of the group's production footprint to improve strategic positioning and reduce operating costs over the longer term, also supported the profit growth.

The group's revenue for 1QFY16, however, slipped 5.87% to RM82.4 million from RM87.5 million in the corresponding quarter a year ago, mainly due to a change of pricing for some products to a major customer, and the deconsolidation of a Vietnamese subsidiary from Dec 31, 2015 to a jointly-controlled entity, though these were mitigated by sales to a new multinational tobacco company customer.

The directors are of the opinion that the outlook for 2016 will continue to be competitive in the volatile global environment.

Besides efficiency improvement, wastage control and active cost containments, the group will continue to develop new opportunities which would lead to volume growth from new customers in other geographical segments and existing customers.

As of closing, Tien Wah was unchanged at RM2.37, with only 125,600 shares done.

 

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