KUALA LUMPUR (Oct 17): Packaging company HPP Holdings Bhd (KL:HPPHB) reported a 54.5% decrease in its net profit to RM1.04 million for the first quarter ended Aug 31, 2024 (1QFY2025), from RM2.29 million a year ago, hurt by lower sales and foreign exchange loss due to a strengthening ringgit.

 Revenue for the quarter fell 12.4% to RM16.65 million from RM19.01 million in the previous year’s corresponding period, as the company saw lower sales from the electronic and electrical (E&E) and sheath contraceptive industries.

Going forward, the company said it will continue to focus on improving production capabilities, while increasing product quality, and driving both efficiency and productivity along with cost optimisation.

“At the same time, we will actively pursue new business opportunities to expand our client base across a wide range of industries, both domestically and internationally.”

“As the global demand for green or sustainable packaging is on the rise, we see good potential sales growth in the paper pulp moulded packaging product,” it added.

HPP Holdings’ shares closed half a sen or 1.1% lower at 43 sen, giving it a market capitalisation of RM167.05 million.