KUALA LUMPUR (Aug 26): Snack food and confectionery manufacturer Oriental Food Industries Holdings Bhd's net profit for the first quarter ended June 30, 2021 (1QFY22) fell 75% to RM1.08 million from RM4.34 million a year ago as it recorded lower revenue and gross profit margins amid higher operating costs.

Earnings per share amounted to 0.45 sen for 1QFY22 compared with 1.81 sen for 1QFY21. Revenue retreated 18.22% to RM60.21 million from RM73.62 million, its bourse filing today showed.

The group also announced an interim dividend of 0.1 sen per share, down from the 0.5 sen per share it declared for the corresponding quarter last year.

As at June 30, 2021, the group was in a net cash position, with cash balance of RM31.49 million after subtracting total borrowings of RM8.23 million.

The group said its production has been running at 60% capacity, due to the 60% workforce cap imposed by the government under the current movement restrictions to curb further spread of Covid-19. It also experienced a two-week production halt during 1QFY22 to comply with the authority’s instructions and for sanitisation purposes.

“These measures and precautions have negatively impacted our production and eventually our sales for this quarter."

Nevertheless, Oriental Food's board expects the group's performance to be satisfactory and remain positive for its FY22 ending March 31, 2022, despite the various challenges it is facing, from competitive markets to uncertainties due to the pandemic.

The counter closed at RM1.10 today, up 4.76% from the previous trading day.