PETALING JAYA: Tien Wah Press Holdings Bhd, which is closing down its 57-year-old printing business in Malaysia, swung to the red registering a net loss of RM14.45 million for the second quarter ended June 30, 2017 against a net profit of RM6.12 million in the previous corresponding period.
It explained that the results were impacted by the cessation of the group’s Australian printing operations announced on June 15, which resulted in an one-off redundancy expenses of RM20.3 million and an impairment loss of machinery of RM11 million.
Excluding the non-recurring expenses, Tien Wah said its profit before tax for the second quarter would have been RM2.8 million. Second-quarter revenue rose 33.6% from RM81.17 million to RM108.47 million.
It has proposed to declare an interim dividend of 2 sen per share for the quarter under review.
Tien Wah told Bursa Malaysia that the 2017 outlook continues to be challenging.
“The tobacco industry continues to face challenges from illicit trade and anti-smoking legislations,” it said.
The group said it continues to review the current footprint, while focusing on growth opportunities in Indonesia and Dubai.
“The group will also continue to identify growth opportunities in other geographical segments,” it added.
For the first six months of the year, Tien Wah reported a net loss of RM10.32 million versus a net profit of RM11.72 million in the same period last year, with revenue increasing 33.8% from RM163.56 million to RM218.86 million.
The stock fell one sen RM1.73 on some 73,000 shares done, bringing it a market capitalisation of RM250.41 million.
Source: The Sun Daily