KUALA LUMPUR (May 10): SLP Resources Bhd said on Tuesday (May 10) that its net profit for the first quarter ended March 31, 2022 (1QFY22) fell 25.12% to RM4.51 million from RM6.03 million a year ago, due to costs hike in almost every aspect of operations which include materials cost, labour cost and utility cost.

The plastic packaging products manufacturer said in a bourse filing that its revenue for 1QFY22 slipped 1.1% to RM45.52 million from RM46.02 million a year ago, due to the decrease in sales of flexible plastic packaging products.

The company proposed an interim dividend of one sen for the latest quarter, payable on July 6.

Riding on the relaxing travelling restrictions in the endemic phase regionally, the group anticipates growth in business potentials and gradual improvement in its financial achievement for 2022.

The geopolitical tensions, however, have caused commodity prices to rise, it said.

It also said partial lockdowns in China could potentially prolong the supply chain interruption.

The incremental increase in the minimum wages rate and other inflationary factors in Malaysia may cause near term headwinds which will impact the overall recovery route, it added.

Moving forward, it said the group will continue to focus on its core strengths to foster growth momentum.

SLP Resources closed two sen or 2.17% lower at 90 sen on Tuesday (May 10), valuing the group at RM228.43 million.

Year to date, the counter has fallen 3.23%.