PETALING JAYA: Thermal insulation material maker Superlon Holdings Bhd began its financial year 2021 (FY21) on a positive note as its net profit surged by 53% year-on-year (y-o-y).
The group told Bursa Malaysia yesterday that its net profit increased to RM3.8mil in the first quarter (Q1) ended July 31, up from RM2.49mil in the same quarter a year earlier.
This was mainly due to an increase in total gross profit and lower selling and distribution expenses.
Revenue, however, dipped by 2.89% y-o-y to RM27.41mil in the first quarter, led primarily by a reduction in local sales and exports by the manufacturing division.
According to Superlon, the manufacturing division recorded revenue of RM22.2mil in the May-July 2020 period compared to RM24.5mil a year earlier.
“Despite a lower revenue, we achieved a profit before taxation of RM4.6mil (Q1 of FY20: RM3.3mil) mainly due improved gross profit margins resulting from lower cost of material and production coupled with favourable exchange rate movement and better operation result from our Vietnam factory.
“Revenue for the trading division of RM5.4mil (Q1 of FY20: RM3.8mil) was higher by RM1.6mil due to increase in copper pipes sales to local customers. Trading division’s profit before taxation was RM222,000 (Q1 of FY20: RM106,000) broadly in line with the higher revenue, ” the group said in a filing.
Superlon announced a dividend of 0.75 sen per share for the first quarter. Earnings per share were 2.39 sen.
Commenting on its outlook, the group said the demand for its products is expected to pick up in the second half of 2020 as more of its customers are allowed to restart their operations and supply chains resume post-Covid-19 travel restrictions.
“However, we expect the operating environment to remain clouded in the near-term as the economic impact of the recent Covid-19 pandemic (including possibility of a second wave) has yet to be fully known.
“Nonetheless, the profit potential of our businesses remains intact and we are well positioned to benefit from any recovery in the economy, ” it said.
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