KUALA LUMPUR (Nov 16): Formosa Prosonic Industries Bhd’s net profit rose 10.47% to RM48.87 million in the third quarter ended Sept 30, 2023 (3QFY2023) from RM44.24 million a year before, thanks to a gain on disposal of property plant and equipment amounting to RM7.3 million.

As a result, its earnings per share increased to 19.16 sen in 3QFY2023 from 17.32 sen a year ago, the electronic manufacturer said in a bourse filing.

On operations, Formosa's gross profit fell 4.57% to RM47.81 million from RM50.1 million. This was on the back of a 21.87% drop in revenue to RM234.46 million from RM300.1 million previously, due to lower sales volume.

However, it is noted that sales volume had improved for the second consecutive quarter from its recent low in 1QFY2023, when it booked RM9.72 million net profit on RM109.24 million revenue.

For the cumulative 9MFY2023, its net profit fell 13.19% to RM84.94 million from RM97.84 million a year before as revenue shrank 35.27% to RM519.94 million from RM803.29 million.

Together with lower sales volume, the group also attributed lower gain on foreign exchange to its weaker profitability for 9MFY2023.

On prospects, the group anticipates that the operating environment continues to be challenging in the coming quarters due to persistent strong headwinds from inflationary pressure and high interest rates, coupled with inventory adjustments in the market.

“The group is aware of these circumstances and will continue to monitor the situation closely and take necessary steps to mitigate any adverse impact and to optimize its operations to adapt to the volatile business environment,” it added.  

Formosa’s share price settled Thursday’s session at RM2.94 after it fell two sen or 0.68%, giving the group a market capitalisation of RM755 million.