Friday 21 Jun 2024
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KUALA LUMPUR (Nov 27): Kumpulan Perangsang Selangor Bhd’s (KPS) net profit for the third quarter ended Sept 30, 2023 (3QFY2023) fell 55.35% to RM6.26 million from RM14.02 million a year ago, as operating profit fell 34% to RM22.5 million as prevalent operational challenges encountered by its manufacturing subsidies put pressure on margin, coupled with higher input costs — including electricity tariffs — and finance costs.

The group's revenue dropped 13.04% to RM332.87 million from RM382.77 million a year earlier, mainly due to declines in its manufacturing units Toyoplas Manufacturing (Malaysia) Sdn Bhd, CPI (Penang) Sdn Bhd and MDS Advance Sdn Bhd, which the group said is consistent with its exposure to the consumer electronics industry.

"The industry has been grappling with a deceleration in demand, attributed to weaker consumer sentiment and a subdued macroeconomic environment leading to excess of inventory at the customer's end. Furthermore, in the case of Toyoplas, its revenue growth was further challenged by the transition of a major customer taken place a year before," KPS said in a statement.

Its earnings per share dropped to 1.20 sen in 3QFY2023 from 2.60 sen last year. It also announced an interim dividend of one sen per share, a total payout of RM5.4 million, for FY2023, payable on Dec 29.

For the nine months ended Sept 30, 2023 (9MFY2023), KPS’ net profit dropped 61.51% to RM10.39 million from RM26.99 million in the same period a year ago, as revenue fell 12.35% to RM909.35 million from RM1.04 billion, on lower contribution from its manufacturing and licensing segment amid weaker consumer demand and the cessation of major customers during the period under review. Finance costs also escalated by 27% to RM20.6 million, due to higher interest rates that resulted from the rise in the overnight policy rate.

Moving forward, the group expects its trajectory to likely be marked by caution for the remainder of the year amid the complexity of managing business operations in a still-evolving global economic environment.

Nonetheless, the group said it is committed to continuously strengthening revenue traction and refining all aspects of operations across its businesses to ensure sustainable value creation.

"Central to the group’s strategy is building its capacity to support existing and future businesses while optimising operational and financial performance in the future, at the same time adeptly navigating the business landscape by staying agile and responsive to market shifts," it said.

Shares in KPS finished unchanged at 79 sen on Monday, with a market capitalisation of RM424.53 million.

Edited ByTan Choe Choe
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