Apparel maker Prolexus’ 2Q profit falls as output hit by labour shortage

TheEdge Mon, Mar 28, 2022 11:15pm - 4 months View Original

KUALA LUMPUR (March 28): Prolexus Bhd’s net profit slumped 88.92% to RM1 million in the second quarter ended Jan 30, 2022 (2QFY22), from RM8.85 million a year earlier, mainly due to a lower revenue.

The apparel manufacturer said the higher profit previously was also contributed by liquidated ascertained damages charged to a contractor.

Earnings per share fell to 0.37 sen from 3.34 sen, the group said in its bourse filing.

Revenue fell 10.77% to RM62.02 million from RM69.51 million in 2QFY21, due to a lower apparel output as a result of a shortage of workers.

Prolexus said the labour shortage issue has impacted its order fulfilment, and the management is taking proactive measures on its recruitment activities to cushion the impact.

For the first half of FY22, Prolexus’ net profit tumbled 93.84% to RM1.49 million, from RM24.08 million in the same period of FY21. Revenue fell 10.92% to RM119.84 million from RM153.49 million.

Looking forward, the group expects businesses to remain challenging in the forthcoming quarters amid Covid-19 challenges.

“Notwithstanding the shortage of workers and the uncertainty in the global economic recovery, we are seeking avenues to enhance the performance of the group,” it added.

Shares in Prolexus closed down two sen or 2.82% at 69 sen on Monday (March 28), giving the group a market capitalisation of RM191 million.  

The stock was the fifth most actively traded on Bursa Malaysia with a total volume of 47.95 million, compared with 37.20 million recorded last Friday (March 25), when the share price closed at a more than nine-month high of 71 sen. 

Over the past week, the stock has surged by 79% or 30.5 sen, from 38.5 sen on March 21.

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