Natbio's topline & bottomline dropped sharply

Natbio has just reported its results for the 1Q2009 ended 31/5/2008. Its net profit dropped 89% q-o-q or 84% y-o-y to RM1.2 million while its turnover dropped 31% q-o-q & 31% y-o-y to RM30.8 million. The company explained that the sharp fall in its turnover was due to weaker consumers' sentiment & higher selling prices for its products. Consequently, its net profit plummeted.

The big question is how would this producer of Ali Café instant coffee & Power Root energy drink cope as the economy slowdown continues?



From the weekly chart below, the stock's downtrend appears to be intact. My earlier report that the share price could have bottomed was proven wrong (go here).


Chart: Natbio's weekly chart as at July 23th (source: Quickcharts)

Based on the poor results for the last quarter, we should avoid Natbio until we can see improvement in its financial performance.