KUALA LUMPUR (Dec 4): Superlon Holdings Bhd's (KL:SUPERLN) net profit for the second quarter ended Oct 31, 2024 (2QFY2025) dropped 12.4% year-on-year to RM3.24 million from RM3.69 million, weighed down by higher foreign exchange losses.
This was despite revenue for the quarter rising 15.2% to RM33.38 million from RM28.97 million, driven by increased sales in its manufacturing and trading segments.
Earnings per share (EPS) for 2QFY2025 stood at 2.04 sen, down from 2.33 sen in 2QFY2024, and from 2.49 sen in the preceding quarter ended July (1QFY2025).
The group, which produces nitrile butadiene rubber, and parts for air conditioning and refrigeration appliances, declared a second interim single-tier dividend of 0.75 sen per share, alongside a special single-tier dividend of 1.25 sen per share, totalling 2 sen. Both dividends will be paid on Dec 30, 2024, to shareholders on the register by Dec 19, 2024.
The profit decline was primarily due to RM0.49 million in realised and RM0.06 million in unrealised foreign exchange losses, the company said in its filing with Bursa Malaysia.
Gross profit for the quarter increased marginally to RM8.94 million from RM8.5 million, although gross profit margin softened to 27% from 29% in the same period last year.
Quarter-on-quarter, net profit decreased by 17.9% from RM3.94 million in 1QFY2025, while revenue dropped 10.7% from RM37.4 million. The decline was attributed to reduced contributions from both segments and less favourable exchange rate movements.
For the cumulative first half ended Oct 31, 2024 (1HFY2025), net profit grew 19.3% to RM7.18 million from RM6.02 million a year earlier, while revenue surged 24.6% to RM70.78 million from RM56.83 million.
Superlon noted that while its operating environment remains encouraging, geopolitical tensions and global economic uncertainties could pose challenges. The board expressed optimism about maintaining performance for the full financial year ending April 30, 2025.
Shares of Superlon last traded at 97.5 sen, giving it a market capitalisation of RM115.19 million. The counter is up over 12% this year.