KUALA LUMPUR (Feb 21): Focus Lumber Bhd posted a net profit of RM12.94 million for the fourth quarter ended Dec 31, 2021 (4QFY21), as compared to a net loss of RM3.41 million a year earlier, mainly due to higher average selling price (ASP) of its products and improved production efficiency.

Earnings per share swung to 13.08 sen versus a loss per share of 3.45 sen in 4QFY20, according to the plywood and veneer manufacturer’s filing on Monday (Feb 21).

The group declared an interim dividend of three sen per share, payable on April 20.

Quarterly revenue jumped two-fold to RM55.22 million from RM25.83 million a year ago, mainly attributed to higher sales volume and the higher ASP of its products.

“Sales volume grew 53% in [the] current quarter with 12,000 m3 of finished goods loaded on bulk carriers in December 2021, while average selling price was approximately 50% higher as compared to 4QFY20. 

“Average selling price is currently at its peak due to strong demand on plywood, especially from the US,” the group said.

In terms of quarter-on-quarter, net profit ballooned more than seven-fold from RM1.7 million in 3QFY21, while revenue more than doubled from RM22 million.

For the full year (FY21), Focus Lumber reported a net profit of RM15.87 million compared to a net loss of RM9.04 million in FY20, on a 52.63% surge in revenue to RM133.98 million from RM87.78 million.

“Performance of the group improved in [the] current financial year, attributable to the high demand and selling price of our products. 

“The [revenue] increase was due to higher sales volume and ASP in [the] current year. In line with the increase of our production volume under a more relaxed standard operating procedures (SOP) in [the] current financial year, our sales volume had jumped by approximately 21%.

“Average selling price grew by circa 26% in [the] current financial year,” it added.

Focus Lumber is optimistic of its prospects for FY22, given the selling price of its products is at a historical high as a result of strong demand for plywood. It added that it expects demand for plywood to remain strong.

The group noted that it is still experiencing a worker shortage but said it is positive that the government will slowly reopen the border, which will enable new foreign workers to be brought into the manufacturing sector over time.

“Logs supplies issue might be tighter because the state government had uplifted the log export ban effective Jan 3 this year. 

“However, we do not expect it to have any significant impact on our production level as preference is given to local mills, and logs export which is capped at 20% is not automatically granted.

“Overall, the board of directors is optimistic that the group is able to achieve an excellent performance in the next financial year,” it added.

Focus Lumber’s share price settled seven sen or 4.58% higher at RM1.60 on Monday, giving it a market capitalisation of RM171.98 million.