KUALA LUMPUR (Nov 23): Fiamma Holdings Bhd's net profit in the three months ended Sept 30, 2023 climbed by 35.55% to RM10.48 million from RM7.73 million, thanks to a RM9.16 million gain on sales of other investments which offset a negative change of fair value in other investments of RM5.30 million and higher operating expenses and finance costs.

The electrical appliance and medical equipment distributor's earnings per share rose to 1.98 sen from 1.52 sen, a bourse filing on Thursday showed.

Revenue for the three-month period rose by 13.91% to RM102.27 million compared to RM89.79 million in the corresponding period a year ago.

On a quarterly basis, the group’s net profit came in lower from RM20.66 million reported in the immediate preceding three-month period while revenue rose 10.13% from RM92.86 million.

Meanwhile, Fiamma saw its net profit for the 12 months ended Sept 30, 2023 soar by 79% to RM65.95 million from RM36.84 million in the previous year, mainly attributable to a positive change in fair value of other investments of RM23.24 million and gain on sales of other investments of RM15.02 million

As a result, earnings per share increased to 12.44 sen from 7.36 sen, its Bursa Malaysia filing showed on Thursday.

Revenue rose by 10.29% to RM408.04 million against RM369.98 million, underpinned by higher contribution from its property development segment.

Fiamma has changed its financial year end from Sept 30 to Dec 31.

On its outlook, the group said it will continue to remain focused on its existing core businesses.

“For the trading and services segment, Fiamma will continue to build on its supply chain system and core competencies to remain a market leader for its products.

“It will continue to invest in brand building and promotional activities to strengthen and expand its distribution network in Malaysia for its various brands of home appliances, sanitaryware, kitchen and wardrobe system and built-in furniture, medical devices and healthcare products and source for new products and business opportunities that are in synergy with the group’s products and activities.

“For the property development segment, the completed and unsold residential and commercial developments will contribute to the group’s revenue in the financial year 2023 and the coming financial years,” it said.

At the time of writing, Fiamma shares traded 2.5 sen or 2.75% higher to 94 sen, giving it a market capitalisation of RM495.76 million.

Year to date, however, the stock has fallen by 12.96%.