KUALA LUMPUR (Nov 29): Panasonic Manufacturing Malaysia Bhd (KL:PANAMY) on Friday reported its lowest quarterly net profit in three years, hit by a foreign exchange (forex) loss and increased raw material costs.

Earnings for the second quarter ended Sept 30, 2024 (2QFY2025) fell 92.6% to RM2.47 million, from RM33.22 million a year earlier, according to the group in a bourse filing. Earnings per share declined to four sen from 54 sen.

Panasonic recognised a forex loss of RM16.4 million for the latest quarter, as opposed to a forex gain of RM600,000 in 2QFY2024, due to the strengthening of the ringgit against the US dollar.

Earnings were also affected by increased material costs, especially for copper and aluminium, and lower sales due to a challenging environment, particularly for products with higher profit margins.

The group's operating income was also lower, due to the absence of a one-time claim of RM11.8 million recognised in 2QFY2024 related to the termination of kitchen appliances products.  

Quarterly revenue was flat at RM236.07 million, compared with RM236.42 million a year ago.  

The group declared an interim dividend of 15 sen per share, unchanged from last year, payable on Jan 20.

For the cumulative six months ended Sept 30, 2024 (1HFY2025), net profit fell 62.2% to RM20.26 million, from RM53.65 million a year earlier. Revenue inched down 1.64% to RM457.03 million, from RM464.66 million in 1HFY2024. 

Panasonic said it anticipates a volatile business environment in the current financial year, but remains committed to achieving sustainable growth.  

The group added that it will stay proactive in monitoring market conditions and enhancing sales and operational efficiencies.

Shares in Panasonic settled 10 sen or 0.55% lower at RM18.2 on Friday, giving the group a market capitalisation of RM1.11 billion. Year to date, the stock has gained more than 12%.