Daibochi Plastic and Packaging Industry Bhd says its net profit for the first quarter ended March 31, 2011, was down by 7.4 per cent despite higher revenue.

The net profit declined to RM4.6 million from RM5 million previously due to the uptrending costs of raw materials since the second half of the financial year 2010, it said in a statement today.

Daibochi, the leading flexible packaging solutions provider, recorded a higher revenue of RM67.7 million in the first quarter from RM59.7 million in last year's corresponding quarter.

It said the 13.4 per cent growth in revenue was mainly attributed to its packaging segment, which increased by 9.9 per cent to RM65.1 million from RM59.2 million previously.

This was due to the upward-adjusted selling prices in response to the increasing costs of raw materials, it added.

On the property segment, Daibochi said it contributed RM2.6 million in revenue, to the first quarter performance versus RM0.5 million previously.

This was due to higher sales recognised from the further stage of completion of a commercial property development project in Melaka.

The first quarter basic earnings per share was 6.20 sen compared with 6.68 sen previously.

Daibochi declared an interim tax exempt dividend of three sen per share, which amounts to RM2.24 million.

Entitlement to the interim dividend would be based on the record of depositors as at May 26, and payable on June 10.

Daibochi supplies flexible packaging predominantly to food and beverage and Fast Moving Consumer Goods industries.

To date, the group has built a reputable customer base consisting of leading players in these sectors including Nestle, Cadbury, Kraft/Danone, PepsiCo, Munchy's, Cocoaland, Power Root and Mamee.-- Bernama