We recently visited NTPM Holdings Bhd, a Penang-based tissue and personal care product (diapers, sanitary napkins) manufacturer. Among the key brands under its umbrella are Premier, Royal Gold and Diapex. To offset rising operating costs, NTPM is mulling a moderate 5% to 8% price hike across its products, reversing an earlier decision not to raise prices. In the latest quarter, we noted that its pre-tax margin had declined 3.4% to 10.1%, mainly affected by rising utility costs (gas and electricity). For the year, we gather the incremental utility costs will amount to RM7 million, or 10% of its financial year 2014 ended April 30 pre-tax profit. Hence, we are pleased with its sensible move to increase prices, aimed at defending its margins.
Posted on: Tue, 12 Aug 2014 02:01:25 +0000
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