KUALA LUMPUR (Sept 25): Paper products manufacturer NTPM Holdings Bhd reported an 84.7% decline in net profit for its first quarter ended July 31, 2023 (1QFY2024) to RM165,000 from RM1.08 million in the same period the previous year, despite slightly higher revenue, no thanks to higher interest, advertising and income tax expenses.

Earnings per share dropped to one sen from 10 sen, its bourse filing showed.

While quarterly revenue rose a marginal 3.1% to RM223.9 million from RM217.2 million — on improved contributions from both its tissue paper products segment and personal care products segment, primarily driven by higher average selling prices — the increase was offset by higher interest expenses, advertising costs and general inflationary pressure on administrative expenses, especially higher insurance premium.

On prospects, NTPM anticipates a challenging and volatile business environment, given the Russia-Ukraine war and the uncertainty in foreign exchange rates, which may hinder economic growth and consumer confidence.

Nevertheless, with the current stabilisation of raw material prices, including pulp, waste paper and other inputs, NTPM sees promising opportunities for both the its tissue paper products and personal care products segments.

"Subject to reduced uncertainty regarding the US dollar exchange rate and unforeseen circumstances, the group aims to achieve improved performance in the coming quarters," NTPM said.

NTPM’s shares closed unchanged at 42 sen on Monday, giving the group a market capitalisation of RM471.74 million.