SLP 2Q15 earnings soars 156 per cent

KUCHING: SLP Resources Bhd’s ( SLP) earnings in the second quarter of 2015 (2Q15) soared by 156 per cent year-on-year (y-o-y) to RM6.41 million from RM2.51 million in 2Q14 despite generated lower revenue.

The company in a filing to Bursa Malaysia last Friday (August 7) said revenue in 2Q15 decreased by 6.4 per cent y-o-y to RM42.52 million. SLP in its accounts notes said the lower revenue was attributed to lower domestic sales.

Revenue in the first half of 2015 (1H15) was also lower by 6.6 per cent y-o-y to RM83.94 million from RM89.9 million in 1H14.

Nevertheless, profit before tax (PBT) in 2Q15 jumped by 185 per cent y-o-y to RM8.6 million from RM3 million in 2Q14. For 1H15, PBT increased by 128 per cent yo-y to RM14.7 million while its net profit rose by 116 per cent y-o-y to RM10.87 million compared with RM5.04 million in 1H14.

The higher earnings in 1H15 and 2Q15 were due to better sales mix with higher proportion of export sales of flexible plastic packaging products which led to better profit margins adding that higher productivity, more efficient production activities and gain in realised foreign exchange had also contributed to better PBT in 1H15.

“The current low and stable prices of plastic resins due to low crude oil prices has given a more stable profitability of the downstream plastics industry such as flexible plastic packaging industry,” it said.

“If such trend of low crude oil prices continues or is maintained, coupled with our expansion in production capacity in particular for our MaxInflax range of products for food packaging and hygienic packaging and automation in our production facilities, the company is optimistic it is in a good position to achieve a meaningful profit margin expansion and delivering satisfactory financial results for the financial year ending Dec 31, 2015.”