Perstima 2Q net profit down 28% despite higher selling price

TheEdge Wed, Nov 24, 2021 11:20pm - 5 months View Original

KUALA LUMPUR (Nov 24): Tinplate producer and supplier Perusahaan Sadur Timah Malaysia Bhd (Perstima) registered a decline of 28.13% in net profit to RM10.94 million for its second quarter ended Sept 30, 2021, from RM15.22 million a year earlier, despite a higher selling price.

Earnings per share fell to 8.47 sen from 15.32 sen, the group said in its bourse filing.

Quarterly revenue grew 28.58% to RM286.08 million, from RM222.49 million a year prior, due to higher selling price despite lower sales volume.

Perstima did not declare any dividend for the quarter.

For the six months ended Sept 30, 2021, the group booked a decline in net profit by 36.33% to RM16.34 million, from RM25.66 million last year. This is despite revenue rising 27.11% to RM537.86 million, from RM423.14 million.

Perstima expects its growth and profitability to be affected not only by higher raw material prices and the volatility of the ringgit against US dollar exchange but also by the aftermath of the pandemic.

Perstima also said that its diverse operating locations in Malaysia, Vietnam and the soon-to-be-completed Philippines manufacturing facility will help it cushion negative impacts.

“With the recent reopening of more economic sectors worldwide due to gradual relief on pandemic restriction with the rising global vaccination rate, the group will continue to strengthen the business activity in the near future.

“The group will nevertheless apply its best efforts to continue to improve production efficiencies and cost savings and to increase sales and marketing efforts (including exploring new markets) to ensure the profitability of the group for the current financial year,” the group said.

Perstima shares closed unchanged at RM3.75 on Wednesday (Nov 24), giving the group a market capitalisation of RM484.11 million.

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