KUALA LUMPUR (Nov 23): Tomei Consolidated Bhd’s net profit grew 14.24 times to RM14.32 million in the third quarter ended Sept 30, 2022 (3QFY2022) against RM1.01 million in 3QFY2021 driven by higher sales due to the reopening of the economy.

As the economy reopened this year, strong demand for jewelleries resulted due to increased wedding activities because of backlogs during the Covid-19 pandemic lockdowns. Compared with the same quarter last year, the company was affected by the lockdowns.

Revenue for the quarter almost doubled to RM217.4 million from RM112.09 million, contributed mainly by the retail division, the gold and jewellery group told Bursa Malaysia on Wednesday (Nov 23).

Tomei said its retail segment reported revenue of RM159.03 million, up 147% from RM64.47 million in the previous year. Revenue for its manufacturing and wholesale segment climbed 42% to RM68.1 million from RM48 million respectively.

Nevertheless, on a quarter-on-quarter basis, Tomei’s net profit fell 44.43% from RM25.76 million, which was also its best quarterly net profit since its listing in 2006. Its revenue was also 27.02% lower due to lower retail revenue as well as from manufacturing and wholesale segments.

But on a nine-month 2022 basis, the group’s net profit soared 246% to RM55.85 million from RM16.12 million as 9MFY2022 revenue increased 49.03% to RM749.455 million from RM502.89 million.

In a statement, Tomei managing director Datuk Ng Yih Pyng said, the group is on track to deliver its best ever annual financial results since its listing.

Nevertheless, Tomei remains vigilant as the business outlook of the global economy is plagued with the tightening of monetary policies, escalating interest rate and worsening supply chain disruptions, Ng said.

Moreover, he noted, the rising cost of living, increasing risk of recession and weakening ringgit may further deteriorate the purchasing power of Malaysians.

“Tomei will continue to adopt prudent measures to ensure that its financial position remains resilient despite the challenging market conditions and craft strategies to ensure long-term sustainability of its business,” it added.

As of Oct 31, Tomei has 58 stores across Malaysia with a target to hit at least 59 stores by end 2022.

Tomei’s share price finished at 91 sen on Wednesday — up 1.5 sen or 1.68% — with some 60,800 shares changing hands. At this price, the group has a market capitalisation of RM126.13 million.