KUALA LUMPUR (May 24): Pecca Group Bhd (KL:PECCA) said its net profit rose 64.1% for its third financial quarter, amid higher sales volume and better cost efficiency in the automotive segment as well as higher finance income.
The net profit for the three months ended March 31, 2024 (3QFY2024) was RM14.05 million, compared with RM8.56 million a year earlier, while revenue increased marginally to RM59.53 million from RM58.58 million.
Earnings per share rose to 1.87 sen from 1.14 sen in 3QFY2023, according to the automotive upholstery maker's exchange filing on Friday.
Pecca has declared a third interim dividend of 1.5 sen per share, with the entitlement and payment dates to be announced later.
For the first nine months of FY2024, the group's net profit increased 59.73% to RM40.44 million from RM25.32 million in the previous corresponding period, as revenue rose 12.82% to RM188.33 million from RM166.93 million.
The net profit margin for the nine-month period was 21.5%, compared with 15.2% previously.
In a statement, Pecca said it is on track to deliver another record full-year earnings, as the group has surpassed FY2023's total net profit within the first nine months of FY2024.
"The nine-month period not only saw a stronger net profit margin, but also the increase of Pecca’s cash holding crossing RM140 million for the first time mostly due to operating activities," the group added.
Pecca's chief executive officer Foo Ken Nee said in the statement that the group is actively seeking new customers in the replacement equipment manufacturer segment by targeting markets like the US, Australia, New Zealand, Singapore, and Europe.
“This year, we intend to make key product launches and ramp up our marketing and brand-building activities.
“We [also] continue to make progress on our second plant at the UMW High Value Manufacturing Park in Serendah, Selangor. After this new plant comes online sometime in 2025, it will double our production capacity, enabling us to meet demand from both existing and new customers, including those from our aviation segment,” he added.
Shares of Pecca closed down two sen or 1.28% at RM1.43 on Friday, giving the group a market value of RM1.08 billion.