KYM back in the black on improved revenue

PETALING JAYA: KYM Holdings Bhd has returned to the black with a net profit of RM227,000 for the second quarter ended July 31 compared with a net loss of RM860,000 in the corresponding period last year.

The industrial paper bag manufacturer said it returned to profitability due to an improvement in revenue in the multi-wall industrial paper bag division in the quarter.

Revenue for the quarter jumped 26.9% to RM26.21mil compared to RM20.65mil a year ago, mainly contributed by its core business of industrial packaging materials, it said in a filing with Bursa Malaysia.

Similarly, for the half-year period, its revenue was up 4.6% to RM49.93mil from RM47.71mil due to an increase in the sales volume from both the multi-wall industrial paper sacks and carton box divisions. However, net profit slumped 73.6% to RM58,000 compared to RM220,000 in the corresponding period last year.

Moving forward, KYM said the operating environment is expected to be challenging on the back of global economic uncertainties, as well as volatility in the ringgit against the greenback and euro.

“In view of the weakening domestic economy and the continued uncertainties in the external environment, the group will continue to optimise operational efficiency and cost effectiveness,” it added.