KUALA LUMPUR: Automotive upholstery maker Pecca Group Bhd (PGB) posted a net profit of RM8.56 million in the third quarter (Q3) ended March 31, 2023 (FY23), as compared to RM8.09 million in the same quarter last year.
Revenue for the quarter increased 28 per cent year-on-year (YoY) to RM58.58 million in the three months.
These are PGB's strongest third-quarter net profit and revenue figures as the company achieves the highest quarterly sales of upholstery car seat covers.
PGB, which posted a double-digit net profit margin of 14.6 per cent in Q3, believes its growth momentum will persist in the forthcoming quarters.
As PGB's major automotive clients, including Perodua, Toyota, Proton, Nissan, Mitsubishi, Peugeot and Volkswagen, see car orders firm up, the company expects to keep riding a wave of demand growth.
For the first nine months of FY23, PGB posted a net profit of RM25.32 million, up 73 per cent YoY from RM14.60 million in the previous corresponding period.
This achievement was attributable to a 47 per cent YoY rise in revenue to RM166.93 million for the nine months.
In the third quarter of FY23, PCB's revenue was driven by demand for upholstery car seat covers, the sewing and supply of car accessory covers, and the provision of wrapping and stitching services.
Each subsegment contributed about 91 per cent, 4 per cent and 3 per cent of total revenue, respectively.
The original equipment manufacturer (OEM) leather car seat segment contributed about 86 per cent of the total revenue for car seat covers, whilst the replacement equipment manufacturer (REM) and pre-delivery inspection (PDI) segments contributed about 3 per cent and 11 per cent, respectively.
PGB chief executive officer Foo Ken Nee said the demand for upholstery servicing and maintenance services is rising, as some of its major clients, including Perodua, Toyota and Proton, have decided to ramp up production or introduce new models this year.
"As we continue positioning ourselves as a supplier of choice for global and local automotive companies, we see further room to expand this business - both in Malaysia and across the region.
"We are also very excited about what lies ahead for Pecca's aviation business, which currently contributes only a small amount to our revenue.
"The recent European Union Aviation Safety Agency (EASA) certification obtained will help expand this business as one of our strategic key contributors, given that aircraft upholstery commands better pricing and margins compared to the car seat cover for the automotive industry," Foo said in a statement.
In Q3 FY23, Pecca Aviation became the first Malaysian company to receive production organisation approval (POA) C2 certification from EASA.
"Before the EASA certification, our aviation products and services market was limited to Malaysian-registered aircraft.
"With Pecca Aviation now qualified to serve EASA-registered aircraft, we can tap a significantly wider domestic and global customer base," Foo said.