KUALA LUMPUR (June 17): Jaycorp Bhd (KL:JAYCORP) has posted its first quarterly loss in more than three years, weighed down by sluggish furniture demand in both domestic and export markets as well as unfavourable foreign exchange rates.

The furniture maker last reported a quarterly loss for its fourth quarter ended July 31, 2021.

For the third quarter ended April 30, 2025, the group swung to a net loss of RM2.22 million compared with a net profit of RM3.47 million a year ago, as revenue declined 24.2% to RM36.85 million from RM48.62 million.

The group suffered a quarterly operating loss of RM1.88 million, compared to an operating profit of RM4.99 million a year earlier, according to its bourse filing.

Despite its weaker performance, the group declared a first interim dividend of 1.5 sen per share, payable on July 30.

For the first nine months of the current financial year, the group’s total net profit fell 70.7% to RM3.92 million from RM13.37 million a year ago, while total revenue declined 13.3% to RM131.49 million from RM151.64 million.

On prospects, Jaycorp said the minimum wage increase is expected to drive up costs, including labour and raw material costs, and other operational expenses. Additionally, the recent electricity tariff hike and the mandatory 2% EPF contribution for foreign workers will further escalate operating costs, the group said.

While Jaycorp anticipates financial challenges due to the sluggish customer orders and rising operating costs, it said it will focus on cost control, market expansion and product development to drive profitability and growth.

Jaycorp shares closed unchanged at 58.5 sen on Tuesday, valuing the group at RM160 million. Year-to-date, the stock has fallen 7.9%.