Komarkcorp Bhd posts 54.48% increase in revenue for Q1FY22

KUALA LUMPUR: Komarkcorp Bhd, a provider of packaging and printing solutions and its new mask division, announced that the company registered revenue of RM13.41mil for the first quarter ended July 31 (1QFY22).

This figure is a rise of 54.48% or RM4.73mil, compared with RM8.68mil for the first quarter ended July 31, last year (1QFY21) mainly due to the contributions from the mask division.

Komarkcorp recorded a 223.93% rise in gross profit of RM1.91mil for 1QFY22 compared with RM589,000 for 1QFY21.

However, the company recorded a loss before tax (LBT) of RM2.60mil in the quarter under review compared with RM1.50mil in 1QFY21, mainly due to non-cash items of impairment of inventories in Thailand as well as increased depreciation from mask machines.

Group executive director, Roy Ho, said: “Our mask division, which became fully operational during the last quarter of FY2021, is the main reason for the rise in revenue as mask consumption is still increasing given the ongoing pandemic making safety a foremost concern.

“The increasing demand for printed and non-traditional masks is also a trend we are exploiting as a niche, merging both areas of our business.”

“We plan to have a total of up to 128 production lines, with 102 productions lines for three-ply face masks and 26 lines for respirator face masks by 2023.”

Ho added, “This will give us an annual production capacity of 1.22 billion units of three-ply face masks and 312 million units of respirator face masks.

“At present, we have 26 production lines with 4 more lines commissioning within the month.”

“The focus on the production of face masks is to balance out the risks on reliance on the company’s other businesses of packaging and automatic labelling machines as we expect the outlook for consumer packaging and printing services industry to remain challenging in the near future.

Ho shared, “We believe that there are synergies to leverage off for growth and expansion and remain optimistic of our prospects and growth.”