Perstima 1Q net profit down 48% on lower profit margin despite higher sales volume

TheEdge Tue, Sep 21, 2021 06:54pm - 7 months View Original

KUALA LUMPUR (Sept 21): Perusahaan Sadur Timah Malaysia (Perstima) Bhd's net profit slumped 48.29% to RM5.4 million for the first quarter ended June 30, 2021 (1QFY22), from RM10.44 million a year ago, on lower profit margin despite higher sales volume.

Earnings per share fell to 5.44 sen from 10.52 sen, the tinplate exporter said in a Bursa Malaysia filing today.

Quarterly revenue, however, was up 25.48% to RM251.78 million, from RM200.65 million in 1QFY21, due to higher sales volume and selling price.

Perstima said the revenue contribution from Malaysia increased by RM33.6 million (29.1%), while revenue for its business in Vietnam rose by RM17.4 million (19.7%).

Its Philippines operation has yet to contribute any revenue as it is still at a preliminary stage after being registered on Nov 22, 2018.

Perstima said it expects its growth and profitability to be affected by the continued effects of the pandemic on the markets in which the group makes and sells its products.

This is in addition to the continued presence of higher raw material prices and the volatility in the ringgit-US dollar exchange rate, it said.

"Despite the unpredictability, the diverse locations in which the group's manufacturing facilities are based and the diverse markets in which the group sells its products may help the group cushion any negative impact therefrom," it added.

In its 2021 annual report released last month, Perstima managing director Hiroaki Yano said the group took on a cautious view on the outlook for the current financial year ending March 31, 2022 due to the unprecedented levels of uncertainty and volatility in the market.

Nevertheless, Yano said the group expected its business would be supported in the year by its strong balance sheet built over the years and continuous support from its customers.

Perstima's share price closed 0.24% or one sen lower at RM4.17 today, for a market capitalisation of RM538.33 million. In the past 12 months, the stock has risen 11.8%.

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