KUALA LUMPUR (May 25): Corrugated carton maker Muda Holdings Bhd’s net profit more than doubled to RM35.42 million for the first quarter ended March 31, 2021 (1QFY21), from RM17.49 million in the corresponding quarter a year earlier, on the back of better selling price of industrial paper and paper packaging products.
Revenue for the quarter grew 22.25% year-on-year (y-o-y) to RM415.01 million from RM339.48 million, the group’s filing with Bursa Malaysia showed.
On a quarter-on-quarter basis, however, the group’s revenue dipped 9.76% from RM459.91 million posted in 4QFY20, while net profit slipped 4.43% from RM37.06 million in 4QFY20.
“The slight dip in revenue was due to the end of peak season for school bookshop operations in the trading division and partially offset by the net positive impact from higher selling prices for recycled paper, industrial paper and paper packaging products with lower sales volume in the current quarter,” it said.
On prospects, the group cautioned that impact from the implementation of MCO 3.0 nationwide on domestic economic activities would have a spill-over effect on the group’s performance in the near term, as demand for the group’s products would be affected by lower consumption across all industries.
Nonetheless, with effective cost control measures put in place, improved production efficiencies and current market sentiment, the board of directors is confident that the group will be profitable for the rest of the year, it added.
Muda Holdings’ share price closed at RM2.81 today, down three sen or 1.06%, with 337,100 shares done, bringing the group a market capitalisation of RM857 million.
