PETALING JAYA: Evergreen Fibreboard Bhd (EFB) recorded a net profit of RM9.64mil for its first quarter ended March 31, compared with a net loss of RM12.15mil in the previous corresponding period, mainly due to higher revenue from its downstream products and higher average selling price from panel boards.
In a filing with Bursa Malaysia, the furnishing company said the boost in net profit was also attributed to lower operation cost as a result of higher production efficiency and foreign exchange gain recorded during the quarter.
Revenue in the first quarter rose to RM233.22mil compared with RM227.41mil a year earlier.
“Despite lower sales volume, the increase in revenue was mainly contributed from higher revenue from downstream products and higher average selling price from panel boards, ” EFB said.
Commenting on its prospects, EFB said it has been focusing on the local markets for its panel board production facilities in Malaysia and Indonesia.
This has helped relieve some of the logistical pressure on downstream products, which are exported to meet growing demand in economies like the United States.
“Aside from limited shipping availability, other challenges include rising raw material prices, weakening outlook of the dollar, shortage of labour and cautious management of operations to reduce the risk of spread of Covid-19 in its premises.
“However, these are tempered with strong order outlook for its products, especially for the downstream segment, better efficiency and cost structure due to various restructuring efforts carried out in the previous year and higher average selling price.”
Despite the worsening Covid-19 situation in Malaysia, EFB said there is still hope for improvement with the implementation of a nationwide movement control order, which allows for industry and commercial activities to continue.