Pecca 3Q net profit flat at RM8.09mil

Pecca Group Managing Director Datuk Teoh Hwa Cheng

KUALA LUMPUR: Pecca Group Bhd’s net profit for the third quarter ended March 31 (3Q) rose marginally to RM8.09mil from RM8.05mil a year ago.

Revenue for the quarter showed a 7.42% increase to RM45.65mil from RM42.5mil in the same period last year.

The automotive leather upholstery maker said the improved performance was mainly due to higher revenue from the automotive segment.

For the current quarter, the group’s revenue was driven by leather upholstery, leather cut pieces supply and the healthcare division which contributed approximately 83%, 7% and 5% of the total revenue respectively.

In the first nine months to March 31, Pecca posted a net profit of RM14.6mil, down 24% from RM19.2mil previously in tandem with the 1.27% fall in revenue to RM113.64mil against RM115.11mil a year ago.

Managing director Datuk Kelvin Teoh Hwa Cheng said: “Most of our major customers are also seeing a promising year ahead, and have increased production levels to expedite vehicle deliveries to customers. Despite the challenges, the outlook for the coming quarter shall be positive given the situation is improving.”

Meanwhile, the revenue generated from the healthcare segment in Q3 was lower at RM2.38mil as compared to RM5.88mil posted in the preceding year's quarter.

The group said that this was mainly due to a decrease in sales while the new agent develops a new angle for market penetration.

“The group expects the demand for PPE products to sustain as medical-grade masks and other mask varieties will continue to be a necessary part of daily life for much of the foreseeable future. Although the government has relaxed rules for the usage of face masks outdoors, it is still strongly encouraged to wear face masks, especially in crowded areas.

“In view that it is still mandatory to wear facemasks indoors, the group does not foresee a severe impact on the face masks business,” Teoh said.