KUALA LUMPUR: Box-Pak (M) Bhd’s net profit more than doubled to RM4.07 million or 6.77 sen a share in the second quarter ended June 30, 2015 (2QFY15) from RM1.69 million or 2.81 sen a share a year ago, as revenue from its Vietnam operations received a boost from the ringgit’s depreciation.

“This improvement was mainly contributed by increase in sales from the Ho Chi Minh plant and reduction in losses from the Hanoi and Johor (Malaysia) plants,” it said in a filing with Bursa Malaysia yesterday.

The carton box manufacturer’s revenue was higher by 12.4% to RM97.81 million in 2QFY15 from RM87 million in 2QFY14. In the six months ended June 30, 2015 (6MFY15), Box-Pak’s net profit tripled to RM6.59 million or 10.98 sen a share from RM2.19 million or 3.64 sen a share in 6MFY14.Revenue was 16.5% higher at RM193.92 million from RM166.47 million.

The group said the strengthening US dollar against regional currencies in 2015 poses a challenge for the group as some of the materials bought are US dollar-denominated.

“Competition in the carton industry in Malaysia and Vietnam has remained stiff and in order to maintain its market share, the group will need to constantly review its price structure,” said Box-Pak.

Box-Pak shares closed 21 sen or 8.54% lower at RM2.25 yesterday, bringing a market capitalisation of RM147.66 million.

This article first appeared in digitaledge Daily, on August 19, 2015.