Perstima’s net profit falls 37.5% in Q3 on lower sales

PETALING JAYA: Perusahaan Sadur Timah Malaysia Bhd’s (Perstima) net profit fell 37.5% to RM6.33 million in its third quarter ended Dec 31, 2019 compared with RM10.13 million reported in the same quarter of the previous year, due to lower sales volume despite higher profit margin during the period.

Revenue for the quarter declined 14.3% to RM203.59 million from RM237.48 million previously.

The group told Bursa Malaysia that its operations in Malaysia saw a lower profit before taxation (PBT) of RM6.2 million in Q3’19 compared with RM16.4 million in Q3’18, due to a higher dividend income of RM8.3 million in the previous corresponding period coupled with lower sales volume.

Its subsidiary in Vietnam reported a PBT of RM2.5 million, a decline from

RM4.8 million previously, while the Philippines operation has yet to register any revenue as it is still at a preliminary stage after being registered on Nov 22, 2018.

For the cumulative ninemonth period, Perstima reported a net profit of RM26.3 million, a 23.8% drop from RM34.51 million in the same period of the previous year. Revenue was also down 10.6% to RM668.30 million from RM747.83 million.

Moving forward,

Perstima expects its growth and profitability to be affected by the continued combination of a higher presence of imports and the uncertainty and volatility of the ringgit against the US dollar.

“To enhance the group’s performance, the management will continue its efforts to improve production efficiency, cost saving measures and sales & marketing efforts particularly in light of an anticipated increase in demand due to the upcoming festivities.”