KUALA LUMPUR (Feb 28): Panasonic Manufacturing Malaysia Bhd (KL:PANAMY) booked a 20.1% drop in net profit for the third quarter on the back of softer product sales.

Net profit for the three months ended Dec 31, 2024 (3QFY2025) declined to RM17.12 million from RM21.42 million a year ago, according to the electrical appliance maker’s bourse filing on Friday.

The softer product sales saw quarterly revenue fall 20.3% to RM186.18 million from RM233.55 million previously. The drop in sales was attributed to a challenging market environment, particularly for high-margin products, which in turn impacted the company's bottomline.

No dividend was recommended for the quarter.

Panasonic noted that the decline in profit was partially offset by a foreign exchange (forex) gain of RM7.9 million, versus a forex loss of RM3.4 million in 3QFY2024, as well as a higher share of profit from an associate company of RM2.8 million versus a loss of RM300,000 previously.

For the nine months ended Dec 31, 2024, Panasonic’s net profit halved to RM37.38 million compared with RM75.06 million in the previous corresponding period, while revenue dropped 7.9% to RM643.2 million from RM698.21 million.

The lower cumulative earnings were attributed to lower sales of home shower and vacuum cleaner products, a one-time RM11.8 million claim pertaining to the termination of kitchen appliances products, and a forex loss of RM9.2 million versus a forex gain of RM2 million previously.

Looking to the remainder of the financial year, Panasonic said it anticipates a volatile business environment in view of the increasingly competitive environment.

“Despite facing profitability pressures, the company will remain committed to achieving sustainable growth,” it said.  “To navigate these uncertainties, we will stay proactive in enhancing sales and operational efficiencies.”

Shares in Panasonic ended 20 sen or 1.16% lower at RM17, valuing the company at RM1.03 billion.