Kotra Industries 3Q net profit drops 20%

TheEdge Mon, May 14, 2018 08:27pm - 5 years View Original


KUALA LUMPUR (May 14): Kotra Industries Bhd recorded a 20% drop in net profit to RM3.67 million in the third quarter ended March 31, 2018 (3QFY18) from RM4.58 million in a year earlier.

Earnings per share fell to 2.76 in 3QFY18, from 3.46 in the previous year.

The weaker performance resulted from the product mix from sales derived in the current quarter, according to its filing with Bursa Malaysia today.

Revenue clocked in 1.5% lower at RM44.56 million, against RM45.22million in 3QFY17 attributed to lower sales from the export market, offset by higher sales of pharmaceutical products to local markets and for tender supply.

For the cumulative nine-month period (9MFY18), the group saw its net profit dip 2.8% to RM10.18 million or 7.65 sen per share, versus RM10.47 million or 7.89 sen per share a year ago no thanks to higher foreign exchange gain recorded a year earlier and it offset with the increase in sales from local markets and lower finance cost incurred for the current period.

Its 9MFY18 revenue, however, rose to RM134.18 million, from RM124.19 million due to higher tender supply and aggressive promotional efforts for local markets.

On prospects, Kotra is optimistic that it will continue to be profitable this financial year.

“Although the current economic conditions are expected to remain challenging, the group will continue to strive to increase its market share in both the local and export markets,” it said.

Kotra will also seek to secure new tenders and contract manufacturing to utilise its available production capacity while leveraging the research and development (R&D) activities for new products.

Kotra’s shares rose one sen or 0.62% to RM1.63 at the closing bell today, giving it a market capitalisation of RM217.77 million. Over the past 12 months, the counter has gained about 11.85%.

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