KUALA LUMPUR (May 23): BP Plastics Holding Bhd said its net profit for the first quarter ended March 31, 2022 (1QFY22) declined 22.05% to RM7.54 million from RM9.67 million a year earlier, mainly due to elevated production costs arising from the unexpected Ukraine conflict.

However, the packaging material manufacturer’s quarterly revenue grew 31.84% to RM131.92 million, from RM100.06 million on stronger demand and higher selling prices, according to its bourse filing.

The company declared a first interim dividend of 1.5 sen per share. The entitlement date of the dividend is fixed on June 22 and payment will be made on July 7.

On prospects, the group said it is cautiously optimistic on the sustained and growing demand for plastic packaging products, along with the economic recoveries and improving market sentiment.

Moving forward, BP Plastics will continue to undertake prudent measures on supply chain and cost management, while remaining committed to the long-term sustainability of the business, as well as preparedness in undertaking suitable capacity expansion, as well as automation and technology adoption.

“Despite the headwinds and challenges ahead, the group remains committed to deliver a profitable performance for [the] financial year ending Dec 31, 2022 and generate long-term growth and value creation for all our stakeholders,” it added.

BP Plastics shares ended at RM1.50 on Monday (May 23)’s closing bell, still up two sen or 1.35%. The company has a market capitalisation of RM422.3 million.