KUALA LUMPUR (July 26): Upholstery furniture products manufacturer Homeritz Corp Bhd’s (KL:HOMERIZ) net profit surged 46.37% in the third quarter from a year earlier, thanks to higher sales volume and stronger US dollar.  

Net profit for three months ended May 31, 2024 (3QFY2024) climbed to RM9.09 million or earnings per share of 1.96 sen, from RM6.21 million or 1.34 sen per share recorded in 3QFY2023.  

Revenue for the quarter surged 63.34% to RM61.88 million compared to RM37.88 million recorded in the preceding year corresponding quarter.  

Homeritz did not declare any dividend during the quarter under review.  

Moving ahead, Homeritz will continue to make concerted efforts to develop new products and designs for existing products, achieve better cost efficiencies, and implement effective cost management across all functions. 

It will also continue to remain focused on the core business of design, manufacture and sale of upholstered home furniture amid global economic uncertainties, higher production costs and fluctuation in foreign exchange rates.

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

Its products are exported to more than 40 countries while sourcing certain raw materials such as leather and fabric from countries such as Italy, India, Vietnam, South Korea, Thailand and China.

For the first nine months ended May 31, 2024 (9MFY2024), Homeritz’s net profit grew 51.35% to RM27.37 million from RM18.09 million over the same period a year ago, on the back of higher revenue by 48.52% at RM173.21 million from RM116.63 million.  

Homeritz is of the view that its prospects for the financial year ending Aug 31, 2024, would remain profitable.  

Shares of Homeritz remained unchanged at 58.5 sen on Friday, valuing the group at RM271 million.