KUALA LUMPUR (Feb 28): Pecca Group Bhd has reported another record-breaking financial quarter with both revenue and net profit at all-time highs.

The automotive upholstery maker’s net profit jumped 59.1% to RM13.38 million for the financial quarter ended Dec 31, 2023 (2QFY2024) from RM8.41 million a year ago, while its quarterly revenue increased by 21.1% year-on-year to RM64.76 million from RM53.48 billion.

For the quarter under review, the group declared a dividend of one sen per share, bringing the total dividend for FYE2024 to two sen per share.

In a bourse filing, the group attributed the increase in revenue to the demand for upholstery car seat covers, the sewing and supply of covers for car accessories, and wrapping and stitching services.

For the six-month period ended Dec 31, 2023 (6MFY2024), Pecca’s net profit leapt by 57.5% to RM26.39 million from RM16.76 million, while its revenue increased by 18.9% to RM128.8 million from RM108.35 million.

Looking ahead, Pecca anticipates the automotive industry to be buoyed by economic growth, improved supply chain conditions and sustained buying interest in new vehicles including electric vehicles.

“To support the potential increased production volume requirements, Pecca is in the pipeline of preparing the development of its second manufacturing plant at the UMW High Value Manufacturing Park in Serendah, Selangor.

"The second plant will effectively double Pecca's production capacity, helping the group meet the demand of existing and new customers," it said.

Pecca pointed out that it is also working to widen its local and foreign customer base in the replacement equipment manufacturer (REM) segments.

Furthermore, Pecca’s executive director Teoh Zi Yi said the group is banking on its aviation segment to unlock its next phase of growth.

“We will continue to work toward building a strong and stable customer base in the aviation industry. Just last week, we formalized a strategic partnership with Global Component Asia Sdn Bhd (GCA) at the Singapore Airshow 2024.

“This partnership will provide Pecca Aviation with the opportunity to deliver aircraft interior solutions to GCA’s roster of prominent aviation customers, including airlines and maintenance, repair, and operations (MRO) players from key markets around the world,” said Teoh in a statement.

According to the bourse filing, Pecca is currently the only holder of the Production Organisation Approval (POA) C2 Certificate awarded by the European Union Aviation Safety Agency (EASA) with full-scale fabrication capability for aircraft seat covers in Malaysia and Southeast Asia.

At Wednesday’s market close, Pecca’s share price was unchanged at RM1.34, giving the group a market capitalisation of RM1.01 billion.