Malaysian halal-certified snacks maker Oriental first-quarter profit plunges on lower exports

Malaysian biscuit and snacks maker Oriental Food Industries’ net profit dropped 37.38 per cent for its first quarter compared to the corresponding period last year.

The halal-certified manufacturer posted net profit for the three months ended June 30 of 1.96 million ringgit ($0.47 million) versus 3.14 million ringgit for the previous corresponding quarter, it reported in a bourse filing on Wednesday.

Oriental’s cost of sales improved 6.39 per cent from 55.69 million ringgit in Q2 2018 to 52.14 million ringgit this year but its revenue growth fell short, at 5.06 per cent to 63.45 million ringgit.

The company said the fall in revenue is due to lower sales from export markets in its snack food and confectioneries segments.

The company, whose financial year ends March 31, said it expects its performance for the year to be “satisfactory” despite “facing challenges of the competitive markets”.

“The Group is currently making machinery acquisitions for some expansion projects for new product lines,” it said.

“The management expects that these new lines will contribute positively towards the growth and profitability of the Group. These programmes are expected to be completed in stages in the next few years.”

It has declared an interim dividend of 0.30 sen per share, compared to 0.50 sen per share in the previous corresponding period.

($1 = 4.2138 Malaysian ringgit)

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