Shiner posts drop in Q1 2012 profit

21 May 2012 (Last Updated May 21st, 2012 18:30)

Chinese supplier of packaging solutions Shiner International has reported an operating loss of $0.1m compared to operating income of $1.2m for the same quarter of 2011, with an net income of $0.6m compared to $1m.

Chinese supplier of packaging solutions Shiner International has reported an operating loss of $0.1m compared to operating income of $1.2m for the same quarter of 2011, with a net income of $0.6m compared to $1m.

Shiner's gross profit for the quarter stood at $2.2m and the gross profit margin decreased to 12.5%, down from 14.9% of total revenue in 2011, mainly due to an increase in overhead unit rates as a result of increased labour costs.

The company however reported a 9.2% increase in the total revenue of the first quarter ended 31 March 2012 to $17.4m from $15.9m in the same period of 2011.

This increase was primarily due to a rise of sales in biaxially-oriented polypropylene (BOPP) film and advanced film, the company said.

Shiner International CEO and president Qingtao Xing said that during the quarter the company witnessed improved sales and margins in its BOPP tobacco film and anti-countered film segment.

"As our new BOPP tobacco film line is put into operation, the market competitiveness of our company...is expected to be strengthened [further]. I expect this growth trend will continue in the next quarters and believe this will positively affect our revenue and profit," Xing added.

The company's BOPP tobacco revenue increased by 24.9% ($2m) to $10m, an increase from $8m, benefitting from its operation of new BOPP tobacco film line.

Revenue for the coated film decreased by 16.3% ($0.8m) to $4.1m from $4.9m in the same period of 2011, and revenue in the advanced film division increased by 67.1% ($0.9m) to $2.2m from $1.3m in 2011.