KUALA LUMPUR (Aug 21): Panasonic Manufacturing Malaysia Bhd fell into the red with a net loss of RM2.56 million for its first quarter ended June 30, 2020 (1QFY21), as it had to cease operations during the lockdown period.

The group had reported a net profit of RM30.29 million in the immediate preceding quarter (4QFY20) and a net profit of RM27.09 million in the previous corresponding period (1QFY20).

Quarterly revenue fell to RM154.08 million, down 24.7% from RM204.65 million in 4QFY20, and down 47.1% from RM291.4 million in 1QFY19.

In its filing with Bursa Malaysia, Panasonic Manufacturing said it could not meet some of the sales orders for the period due to the shutdown of its plant from March until early May due to the Movement Control Order (MCO).

It said domestic sales was most impacted, contributing only 21% of total revenue in this quarter as compared to previous year’s contribution of 49%.

Due to lower revenue, coupled with a reduction in interest income and a higher share of losses of associated company’s results, the group posted a net loss for the quarter, it said.

“Both segments’ revenue have been significantly impacted by the MCO with home appliance products segment and fan products segment achieving only 54% and 52% of the revenue recorded in the previous year’s corresponding quarter respectively.

“Fan products segment was able to record a marginal profit before tax of RM4.1 million for 1QFY21, a decrease of 81.8% of RM18.6 million as compared to the profit before tax in the previous year’s corresponding quarter of RM22.7 million,” Panasonic Manufacturing said.

While the group fell into the red in 1QFY21, it said it sees a potential recovery on the horizon for both of its business segments, as its domestic and certain export markets are expected to replenish the depleted stocks in the market.

It said it is cautiously optimistic that sales will improve in the following quarter of the financial year 2021, as economic activities gradually return to normal.

“Nevertheless, the company will continue with its efforts to maintain its business competitiveness by introducing more quality and friendly products with special features. To further strengthen its manufacturing capabilities, the company will forge ahead with its digitalisation and automation plans.

“With these measures in place, the company will be able to meet any challenges ahead with agility and resilience, with adequate support from the government for more certainties in the economy,” it said.

Panasonic Manufacturing’s share price rose four sen or 0.13% to close at RM31.54 today, giving it a market capitalisation of RM1.92 billion.