KOMARKCORP Bhd, a provider of packaging and printing solutions, owes it to the company’s new mask division for its revenue surge in in 1Q FY4/2022. The company’s mask division became fully operational during the final quarter of FY2021.
Despite remaining in the red, the company saw its revenue edged up 54% year-on-year (yoy) to RM13.41 mil from RM8.68 mil in the previous corresponding period.
“Mask consumption is still increasing given the ongoing pandemic making safety a foremost concern,” commented Komarkcorp’s group executive director Roy Ho. “The increasing demand for printed and non-traditional masks is also a trend we are exploiting as a niche by, merging both areas of our business.”
Earnings-wise, however, Komarkcorp saw its net loss widened to RM2.65 mil during the quarter under review from RM1.57 mil in 1Q FY4/2021 due to non-cash items of impairment of inventories in Thailand as well as increased depreciation of mask machines.
“We plan to have a total of up to 128 production lines with 102 productions lines for three-ply face masks and 26 lines for respirator face masks by 2023,” projected Ho.
“This will give us an annual production capacity of 1.22 billion units of three-ply face masks and 312 million units of respirator face masks. At present, we have 26 production lines with four more lines commissioning within the month.”
Moving forward, Ho expects the current focus on face mask production as the right step to balance out the risks of over-relying on its packaging and automatic labelling machines business.
“We expect the outlook for consumer packaging and printing services industry to remain challenging in the near future,” he opined. “We believe that there are synergies to leverage off for growth and expansion and remain optimistic of our prospects and growth”.
Very broadly, Komarkcorp has three business divisions comprising manufacturing of self-adhesive labels and stickers and trading of related products, manufacturing of automatic labelling machinery, and production of face masks.
Its packaging solutions and self-adhesive labels is used by the chemical and agrochemical, food and beverage, home and personal care, industrial and lubricant oil, and pharmaceutical industries.
At 2.45pm, Komarkcorp was up 0.5 sen or 4.55% to 11.5 sen with 1.08 million shares traded, thus valuing the company at RM40 mil. – Sept 24, 2021
