KUALA LUMPUR (May 29): Higher gold prices have helped to widen Tomei Consolidated Bhd’s gross margin, which in turn boosted the company’s net profit to RM4.01 million, a nearly 40% jump from RM2.87 million a year ago.

Quarterly revenue, however, dropped 10.84% to RM127.8 million from RM143.33 million in the previous corresponding quarter.

Tomei, in a filing with Bursa Malaysia today, said the lower revenue was due to drop in sales volume in both the retail segment and manufacturing & wholesale segment.

“Due to the implementation of the MCO (Movement Control Order) by the Government, our business operation with the exception of online e-commerce was totally shut down since March 18,” said Tomei.

On prospects, the board anticipates a challenging time ahead in sustaining the group’s business, said Tomei.

“Despite the gradual opening up of our economy, business remained sluggish due to the fear of infection among the public and the need to maintain the practice of social distancing,” said Tomei, adding that the slow business sentiments could continue until a vaccine to this deadly virus is found as many consumers choose to avoid crowded areas such as shopping malls.

Nevertheless, Tomei said it will continue to focus on its core business and to prudently manage its operational cash flow and at the same time undertake cost-cutting measures to ensure that the group will be able to sustain its operations during this difficult time.

Tomei’s share dropped 0.5 sen to 43.5 sen today, valuing it at RM60.29 million.