KUALA LUMPUR (April 26): Homeritz Corporation Bhd’s net profit surged by 65.9% in the second quarter ended Feb 29, 2024 (2QFY2024) to RM9.24 million, due to increased sales volume and a stronger US dollar.

During the quarter, Homeritz’s revenue surged 44.6% to RM57.57 million from RM39.8 million in the previous year’s corresponding quarter. The group’s earnings per share rose to 1.99 sen from 1.20 sen.

Despite the surge in revenue and net profits, the upholstery furniture products manufacturer flagged that it is operating amid global economic uncertainties and facing increases in production costs and fluctuations in foreign exchange rates.

Nevertheless, it expects to remain profitable for the financial year ending August 31, 2024 (FY2024).

“The group is continuing with concerted efforts to develop new products, new designs for existing products, derive better cost efficiencies and effective cost management across all functions,” it said.

According to the group’s latest annual report, approximately 90% and 57% of its revenue and total purchases of raw materials were denominated in the US dollar.

It said it has exported its products to more than 40 countries and sourced certain raw materials such as leather and fabric from countries like Italy, India, Vietnam, Korea, Thailand and China.

For the six months ended Feb 29, 2024 (6MFY2024), the group reported a 54% increase in net profit to RM18.29 million, from RM11.88 million a year earlier. Revenue increased 41.4% year-on-year to RM111.33 million, compared to RM78.74 million a year earlier.

Shares of Homeritz dipped half a sen or 0.88% to 56 sen on Friday, valuing the group at RM259 million.