KUALA LUMPUR (June 14): Multi-wall industrial paper bag maker KYM Holdings Bhd (KL:KYM) reported a significant decline of 94.8% in its first quarter ended April 30, 2024 (1QFY2025) net profit, due to the absence of a one-off gain amounting to RM15.29 million from the sale of a piece of land and building during the same period last year.

Net profit for its 1QFY2025 plummeted to RM585,000 or 0.38 sen per share, from RM11.27 million or 7.42 sen per share recorded a year earlier, KYM’s bourse filing on Friday showed.

The company’s revenue dropped slightly by 0.8% to RM22.72 million in 1QFY2025 as compared to RM22.91 million a year prior. This was mainly due to lower sales in the carbon box division, partially offset by increased revenue from the multi-wall industrial paper sacks division.

The group did not declare any dividend for the quarter.

Moving ahead, KYM said it plans to leverage the current upward trajectory in the construction sector, anticipating higher demand for cement.

“We shall leverage this momentum and capitalise on the increased demand for cement and anticipate higher contribution from the local cement sector,” KYM said in a statement.

Its chief executive officer Darren Lee added that KYM will remain focused on implementing ongoing business strategies and initiatives to enhance both top-line and bottom-line performance.

"Barring any unforeseen circumstances, [KYM] is cautiously optimistic that the group will be able to navigate the challenges by prudently managing the key risks and achieving satisfactory performance in the remaining nine months of the financial year," KYM added.

KYM's share price closed unchanged at 45 sen on Friday, giving it a market capitalisation of RM68.67 million.