KUALA LUMPUR (Nov 19): Mieco Chipboard Bhd (KL:MIECO) has returned to the black with a net profit of RM1.67 million in its third quarter ended Sept 30, 2024 (3QFY2024), from a net loss of RM45.89 million in 3QFY2023, on increased sales and improvement in production efficiency.  

Prior to this, the group, which manufactures particleboards commonly used as the core material for home and office furnitures, was in the red for five straight quarters from 2QFY2023 to 2QFY2024. Its net loss in 3QFY2023 was due to a one-off impairment loss on plant and machinery of RM38.9 million, the particle board manufacturer’s bourse filing showed.

The latest quarter's revenue rose 9.36% to RM108.37 million, from RM99.09 million in 3QFY2023, on higher sales volume and a favourable sales mix that saw higher value products sold. No dividend was declared.

For the first nine months of FY2024, it logged a net loss of RM5.59 million, down from RM48.44 million a year before, as cumulative revenue grew 19.09% to RM296.39 million from RM248.88 million.

Mieco said it will continue to persevere with its on-going strategy to improve production efficiency and the competitiveness of its products, while pursuing various alternatives to improve its financial position.

Mieco shares settled 2.5 sen or 3.73% higher at 69.5 sen on Tuesday, bringing the group a market capitalisation of RM695 million.