KUALA LUMPUR (Oct 28): Homeritz Corp Bhd's profit rose sharply in the fourth quarter ended Aug 31, 2022 (4QFY22) from a year earlier due mainly to an increase in revenue which enabled the group to achieve better economies of scale.

Net profit jumped by nearly 44 times to RM10.96 million, from RM250,000 in 4QFY21, with earnings per share rising to 2.41 sen from 0.06 sen, according to the group's Bursa Malaysia filing.

Quarterly revenue saw an eight-fold rise to RM51.14 million from RM6.31 million, driven by a stronger US dollar and higher volume of furniture products sold.

Homeritz proposed a final dividend of one sen per share, with the payment date to be decided later.

The group said its net profit and revenue came down in 4QFY21 due to a temporary halt in furniture production during the whole quarter as the government had decided that furniture products were not essential products during Movement Control Order 3.0.

"There was no output produced in 4QFY21. The revenue generated in 4QFY21 was only from sales of finished goods," it said.

Homeritz said the outlook for 2023 remains challenging and uncertain as the full impact of Covid-19 has not been ascertained.

"The group will continue to remain focused on their core business of design, manufacture, and sale of upholstered home furniture which include upholstered sofas, upholstered dining chairs and upholstered bed frames," it added.

Homeritz's share price closed half a sen or 0.94% higher at 53.5 sen on Friday (Oct 28), valuing the group at RM247.83 million.