Green Packet stages turnaround with 1Q net profit of RM18.8m

Green Packet group managing director and CEO CC Puan said: “Our internal business transformation and structure under GP 5.0 is key in driving our performance in 2021 and moving forward."

KUALA LUMPUR: Green Packet Bhd staged a turnaround in its financial performance with net profit of RM18.84m in the first quarter ended March 31,2021, boosted by its investment segment.

In a statement on Monday, the net profit for 1Q21 was in contrast with loss after tax of RM35.31mil a year ago.

On a quarterly basis, it recorded a profit compared to a loss after tax of RM17.25mil in 4QFY20.

Commenting on the turnaround, Green Packet said the net profit for 1Q21 was on the back of a positive earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM21.52mil in 1Q21 compared with loss of RM28.25mil in 1Q20.

Green Packet’s revenue dipped by 3% to RM142.71mil from RM147.05mil. Earnings per share were 1.6 sen compared with loss per share of 3.6 sen.

“This was mainly due to lesser devices shipment from the digital infrastructure & devices segment, which was impacted by the shortage of chipsets in the global market due to unprecedented demands that arose from the increasing norm of working from home and global online learning trends during the Covid-19 pandemic, ” it said.

Green Packet said it also enhanced its pioneering business model and 4.0 strategy with a comprehensive and complementary business growth strategy focusing on the digital arena.

Under their Green Packet 5.0 growth strategy plan in 2021 and moving forward, Green Packet reorganised its business segments into five key business pillars to reflect its holistic end-to-end digital technology solutions suite.

They are (1) smart devices (formerly solutions) pillar and (2) smart city, urban tech and hyperscale data centre pillar -- which are under its digital infrastructure and devices segment.

The other pillars are (3) cloud & enterprise services pillar (includes former communication pillar); (4) digital & financial services pillar. Both are under the digital services segment.

On the investment pillar, they captures both early- and late-stage investment arms in alignment with group’s growth strategy.

Green Packet said the group’s digital infrastructure & devices segment recorded a lower loss after tax (LAT) of RM1.79mil compared to RM3.15mil a year ago.

Its digital services segment’s LAT was lower at RM4.47mil versus RM4.72mil a year ago.

Its Investment segment recorded a PAT of RM43.74mil compared to a LAT of RM5.1mil a year ago.

Green Packet group managing director and CEO CC Puan said: “Our internal business transformation and structure under GP 5.0 is key in driving our performance in 2021 and moving forward.

“We are laser-focused on implementation and I am pleased that we have started our first quarter strongly.”

Puan said the group will ensure the pioneering business sub-segments continue to operate smoothly and profitably while benefitting from the future growth of catalytic projects derived from new growth areas.

Green Packet said the communication sub-segment will focus on implementing operational efficiency, high margin route and expansion into untapped markets, while the Smart Devices sub-segment will target on enhancing 4G and 5G products.

It will also continue pursuing investments in high margin digital services to position for future growth and engage in strategic partnerships to offer comprehensive platforms and applications in IAAS, PaaS and SaaS.

This is further strengthened by eKYC solutions under Xendity, its partnership with Tencent Cloud, which is targeted to begin operations in 4Q21, and greater focus on its Hyperscale Data Centre to complete the digital services segment’s end-to-end journey.

Green Packet said the investment segment has its co-creation venture capital arm, KipleX, focusing on early-stage investments in start-ups that use digital technologies and innovations to improve livelihoods.

Green Packet’s late-stage private equity arm, Green Packet Capital, has also been established to focus on strategic investment and acquisitions that are favourable to the Group’s growth strategies and direction.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Business News

ASB, ASB 2 investment limit increased to RM300,000
Govt allocates RM92mil towards developing halal industry
EPF's investment income falls 21% to RM27bil in 1H22
SemarakNiaga initiative receives RM45bil to spur business activity
Govt allocates RM70mil to improve palm oil industry's sustainability
RM10bil loan funding to spur automation, digititalisation in SME sector
Budget 2023: Reactions from property sector
Govt reduces tax for MSMEs to 15%
Bursa Malaysia ends lower, KLCI down 1.02%
M40: Individual tax reduced by 2.0%

Others Also Read