KUALA LUMPUR: Furniture exporter Poh Huat Resources Holdings Bhd said the coronavirus (Covid-19) hit on sales and profit would be even worst in the second half of fiscal year ending Oct 31, as demand from customers in the US plunged.
The company said new orders for furniture plummeted in March as the COVID-19 pandemic took hold, falling 29% compared with March 2019, and down 23% from February.
"While we do not have April 2020 results as yet, poll amongst manufacturers and distributors in early April indicated over a 70% decline in orders with expectations for May in the 50% decline range," Poh Huat said.
The company, in a filing with Bursa Malaysia today, said net profit fell 27% to RM6.95mil in the second quarter ended April 30 from RM9.5mil a year ago.
Revenue declined to RM121.2mil from RM147mil previously.
"The Covid-19 pandemic has greatly affected our results for the current financial period under review. We expect the full impact of the Covid-19 pandemic will be reflected in the second half of our current financial year," it said.
Poh Huat said in view of the slow recovery expected from the global furniture trade, the company has taken measures to reduce its operating hours and workforce at all manufacturing facilities manufacturing in Malaysia and Vietnam.
"Although orders are slowly returning, when our production will return to normalcy is questionable," it said.
"Operations have yet to return to capacity and is unlikely any time soon."
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