BUSINESS

MUDA HOLDING'S NET PROFIT QUADRUPLES TO RM24.97 MLN IN Q3

26/11/2020 08:28 PM

KUALA LUMPUR, Nov 26 -- Muda Holdings Bhd posted a quadruple net profit of RM24.97 million in the third quarter ended Sept 30, 2020 (Q3 2020) from RM6.09 million reported in the same period last year.

Revenue also increased to RM353.81 million from RM352.54 million previously, the paper milling and packaging company said in a filing with Bursa Malaysia today.

In Q3 2020, Muda Holdings’s profit before tax of RM71.4 million increased by 49.6 per cent compared to RM47.7 million previously.

It was mainly due to a reduction in raw material cost coupled with the reduction in administrative expenses, as well as the absence of impairment loss on capital work-in-progress compared to the corresponding period in 2019.

“Reduction in group borrowings and interest rate gave rise to a 30 per cent reduction in finance cost for the nine months ended Sept 30, 2020, compared to the corresponding period in 2019,” the company added.

It said profit for its manufacturing division was higher for the period under review due to the lower cost of raw material for paper milling and paper packaging.

On prospects, the group is confident of delivering better results in 2020 against the backdrop of higher sales volume and selling prices of its products in the last quarter.

“Due to the recent increase in the demand for industrial paper in the China and South Korea markets, most of the regional competitors had diverted supply to those markets to cope with the production shortage in industrial paper.

“This caused supply reduction to Malaysia and resulted in higher demand for local paper. Secondly, the supply of the recovered paper is limited due to the partial lockdown in Europe and the United States,” it added.

-- BERNAMA

 

 


 


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