PETALING JAYA: Integrated industrial packaging solutions provider L&P Global Bhd reported revenue of RM104.4 million for the nine months ended Sept 30, 2024 (9M’24), compared to RM123.1 million in the corresponding period last year (9’23), primarily due to reduced demand for pallets and boxes and crates from customers in the renewable energy sector.
Boxes and crates remained the group’s primary revenue source, accounting for 72.9%, while pallets contributed 22.3%. The remaining revenue was generated from circular supply and trading services. Geographically, Malaysia made up 81% of total revenue, with Vietnam maintaining a stable contribution of 19%.
Net profit for 9M’24 stood at RM9 million compared to RM15.7 million in 9M’23. The decline reflects the decrease in revenue, which offset the cost advantages and operational efficiencies previously achieved through economies of scale. Additionally, L&P recognised a net foreign exchange loss of RM1.9 million for 9’24, in contrast to a net gain of RM1.1 million in the previous period.
As for the third quarter (Q3’24), L&P recorded revenue of RM31.7 million and net profit of RM700,000.
Executive director and CEO Ooi Lay Pheng said the current macroeconomic challenges have significantly impacted key customer industries, particularly renewable energy, leading to increased cost rationalisation among customers in these sectors.
She added that they committed to strategic business development, focusing on expanding current operations and identifying new growth opportunities to secure future revenue streams and broaden the industries served.
On balance sheet strength, L&P remains a net cash position with a cash and bank balance of RM54.7 million, exceeding total borrowings of RM27.6 million as of Sept 30. The group generated a consistently healthy net operating cash flow of RM25.2 million for 9’24.
Meanwhile, L&P Global has appointed Lee Soon Swee as the group’s executive director, effective Nov 13.
Lee holds a Bachelor of Science degree in aerospace engineering and a Masters of Science in mechanical engineering from Wichita State University. He has more than 30 years of experience in engineering, specialising in applied science and laboratory research and development (R&D) work across aerospace, semiconductor, and life science industries.
Lee has held technical and leadership roles in organisations such as the National Institute of Aviation Research and MEMC Electronic Materials Inc in the US, Applied Materials Southeast Asia Pte Ltd and TMC Life Sciences Bhd in Malaysia, and Pall Corporation in Malaysia and Singapore.
Throughout his career, Lee has driven technical innovation, engaging in the development of advanced composite materials, optimising processes for fabrication of integrated circuits, resolving micro contamination issues and designing lab equipment to improve clinical outcomes in medical technology.
Commenting on the appointment, Ooi said Lee’s proven track record in R&D and material science positions the company to explore innovative packaging solutions that not only address customers’ evolving needs but also open opportunities for expansion into new market segments.
“This aligns with our forward-thinking approach, exemplified by our previous diversification into engineered wood for our packaging products to enhance product quality and throughputs. By leveraging on Lee’s technical leadership and process engineering skills, we aim to further optimise our operations and enhance operational efficiencies,“ she said.
