KUALA LUMPUR (May 20): Malaysian Pacific Industries Bhd, a member of Hong Leong Group, saw its net profit jump 31.5% the year before in the third quarter ended March 31, 2020 (3QFY20) to RM22.05 million from RM16 $ 0.77 million on higher revenue and exchange rate gains.
The gains more than offset by higher expenses and taxes incurred during the quarter, its stock exchange listing showed today. Earnings per Shares rose to 11.59 sen compared to 8.82 sen in 3QFY19.
Its quarterly revenue rose 13.99% to RM376.29 million from RM330.11 million. “Revenues for the Asia and US segments were both higher by 25% and 9% respectively, while the Europe segment was lower by 7% compared to the corresponding quarter of 3QFY19,” said MPI.
For the cumulative nine-month period ending March 31, 2020 (9MFY20), MPI’s net profit was 5.77% higher at RM103.94 million against RM98.27 million in the corresponding period the year before, amid higher operating revenues as revenue rose 1.5% to RM1.16 billion from RM1.14 billion.
The topline increase was primarily due to a stronger contribution from its Asia segment, up 7% to RM737.88 million. However, its US and Europe segments saw revenue up 10% and 6% respectively to RM158.23 million and RM258.15 million.
As for the outlook, MPI said the impact of the US and China trade war has been exacerbated by the COVID-19 pandemic, the effects of which are yet to be assessed.
“Malaysia Movement Control Order (MCO) has also negatively impacted the Group’s productivity in the last few months and is expected to continue in the expected months ahead.
“In anticipation of these challenges and backed by a strong balance sheet, the group is taking cost containment measures and reassessing its business portfolio to mitigate the adverse impact of events beyond the group’s control,” it added.