KUALA LUMPUR (Dec 18): NTPM Holdings Bhd's net loss in the second quarter ended October 31, 2023 (2QFY2024) widened to RM4.03 million from RM3.49 million in the previous year, its Bursa Malaysia filing on Monday showed.

This is largely due to income tax expenses incurred during the current quarter under review.

Quarterly revenue, however, rose by 1.9% to RM224.66 million from RM220.37 million, underpinned by increased sales in the personal care products segment.

Despite posting the net loss, the group declared its first interim dividend of 0.8 sen per share to be paid on Jan 26, 2024, matching the amount per share declared in the previous financial year.

For the first six months ended Oct 31, 2023 (1HFY2024), the group’s net loss swelled to RM3.87 million compared with RM2.41 million a year ago, similarly due to income tax expenses.

Revenue, on the other hand, increased by 12.9% to RM448.54 million from RM437.57 million, mainly driven by the increase in revenue generated by baby diaper products.

On a quarterly basis, the group reported a net profit of RM165,000 in the immediate preceding quarter (1QFY2023) while revenue came in higher from RM223.88 million in 1QFY2024.

Moving forward, the group said with the persistent geopolitical tensions and adjustments from the aftermath of the Covid-19 pandemic, the inflationary pressure and volatile foreign exchange rates hampered economic growth and consumer confidence.

“The business operations environment for the group in Malaysia and beyond remains very challenging. [However], the group is positioned to meet the challenges in its existing markets which have become very competitive.

“With the recent stabilisation in raw material prices, encompassing pulp and waste paper, and the efficient distribution ecosystem of the group, the group is able to adjust its marketing strategy, including lowering its product prices to remain competitive, appealing to a broader customer base, increasing customer interest and fostering brand loyalty."

The group said it aims to improve its performance in the coming quarter, subject to fewer uncertainties surrounding the US dollar exchange rate.

Shares in NTPM closed one sen or 2.56% higher at 40 sen, giving it a market capitalization of RM449.28 million.

Year to date, the stock has fallen by 13.04%.