PETALING JAYA: SLP Resources Bhd’s net profit for its first quarter ended March 31, 2022 dropped to RM4.51mil from RM6.03mil in the previous corresponding period, mainly due to the cost hike in almost every aspect of its operations.

       In a filing with Bursa Malaysia yesterday, SLP Resources, which is engaged in the manufacturing of flexible plastic packaging products, plastic films and other related products, said profit in the first quarter was hit by higher materials, labour and utility costs.

       Revenue in the first quarter was lower at RM45.52mil from RM46.02mil a year earlier.

       “This was due to the decrease in sales of flexible plastic packaging products,” it said.

       Riding on the relaxing travelling restrictions in the endemic phase regionally, SLP Resources said it anticipates growth in business potentials and gradual improvement in its financial achievement for 2022.

       “The geopolitical tensions, however, have caused commodity prices to rise. Partial lockdowns in China could potentially prolong the supply-chain interruption.

       “The incremental increase in the minimum wage rate and other inflationary factors in Malaysia may cause near-term headwinds, which will impact the overall recovery route. Moving forward, the group will continue to focus on its core strengths to foster growth momentum,” it said.

       SLP Resources also declared a first interim dividend of one sen per ordinary share for the financial year ending Dec 31, 2022.