KUALA LUMPUR (Dec 17): Frozen seafood supplier PT Resources Holdings Bhd (KL:PTRB) on Tuesday reported a sharply lower net profit for its second quarter ended Oct 31, 2024 (2QFY2025) due to local sales and higher administrative expenses.
The net profit for the period came in at RM1.68 million, compared with RM18.7 million a year earlier, the company said in a stock exchange filing. Earnings per share fell to 0.31 sen from 3.5. sen.
Aministrative expenses rose 50.9% year-on-year to RM12.2 million from RM8.09 million, as the company booked a RM1.9 million unrealised foreign exchange loss against a RM4.2 million gain previously.
Quarterly revenue dropped 18% to RM91.6 million from RM111.2 million in 2QFY2024, attributed to a change in product mix demanded by local customers, which led to the sale of lower-margin products.
Notably, this marks PT Resources' worst quarterly topline and bottom-line performance since its listing on the ACE Market in August 2022. No dividend was proposed for the quarter.
For the six-month cumulative period, net profit declined more than threefold to RM6.65 million from RM23.4 million in the previous corresponding period. Revenue, however, inched up 5.5% to RM256.7 million from RM243.3 million, driven by higher international sales, particularly from China.
Looking ahead, PT Resources said geopolitical tensions and supply chain disruptions continue to pressure the seafood industry, with key markets such as China having experienced significant drops in seafood imports due to cautious consumer spending and market volatility.
The compaany said it is responding to these challenges by introducing value-added seafood products in China aimed at time-conscious consumers, which are expected to drive demand despite the sluggish market.
Additionally, PT Resources is moving upstream through collaboration with a fish hatchery to develop plant-based feeds, strengthening its supply chain.
Shares in PT Resources closed half a sen or 1.1% lower at 46.5 sen on Tuesday, giving the company a market capitalisation of RM248.8 million.