{"id":9038,"date":"2025-09-02T04:02:44","date_gmt":"2025-09-02T08:02:44","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=9038"},"modified":"2025-09-02T04:02:44","modified_gmt":"2025-09-02T08:02:44","slug":"bp-plastics-sees-earnings-drop-amid-weak-demand","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=9038","title":{"rendered":"BP plastics sees earnings drop amid weak demand"},"content":{"rendered":"


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Revenue dropped 13% year-on-year, underscoring challenges in the flexible plastic packaging sector. \/ Credit: CGN089 via Shutterstock<\/figcaption><\/figure>\n<\/p><\/div>\n

BP Plastics Holding Bhd (KLSE: BPPLAS) reported a significant decline in earnings for the first half of the financial year 2025 (1HFY25), with net profit plummeting 62% year-on-year (YoY) to RM6 million.<\/p>\n

This performance accounts for only 19% of analysts\u2019 full-year forecasts and 20% of consensus estimates. The company did not declare any dividend for the quarter.<\/p>\n

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Revenue for the period fell 13% YoY, primarily due to subdued global demand for stretch films\u2014products that constitute over 70% of the company\u2019s revenue. Factors contributing to this downturn include ongoing trade tensions, tariff disruptions, and aggressive price dumping by regional competitors with excess inventory.<\/p>\n

BP Plastics faces challenges<\/strong><\/h2>\n

Export markets, which contribute more than 65% of BP Plastics\u2019 revenue, were particularly affected, although domestic sales remained relatively stable.<\/p>\n

Analysts have revised their projections for the company, with revenue estimates now at RM377 million for 2025, reflecting an 18% decline from the previous year. Earnings per share (EPS) estimates have been adjusted to RM0.10, up from RM0.0576 in the previous year.<\/p>\n

Consequently, the consensus price target for BP Plastics\u2019 stock has been lowered by 6.2% to RM0.98.<\/p>\n

Looking ahead, BP Plastics faces challenges in the flexible plastic packaging industry, including global economic uncertainties, elevated costs, and supply-demand imbalances.<\/p>\n

However, the company remains confident in the steady and growing demand for flexible packaging products and its ability to defend profitability.<\/p>\n

Investors are advised to monitor the company\u2019s performance closely in the coming quarters to assess its recovery trajectory.<\/p>\n

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