LKL net profit hit by higher prices of manufacturing components
KUALA LUMPUR: LKL International Bhd posted a lower net profit in the second quarter despite more than 32 per cent revenue growth.
The company, which manufactures medical and healthcare beds, peripherals and accessories, recorded RM100,000 net profit in the quarter ended October 31 compared with RM300,000 a year ago.
This was due to the higher prices for manufacturing components, exacerbated by the Sales and Services Tax levied on the manufacturing inputs, said LKL in a statement.
Revenue rose 32.3 per cent to RM9.56 million due to increased deliveries to clients in the manufacturing and trading segments.
LKL said revenue growth was led by higher sales of medical and healthcare beds, peripherals and accessories, which increased 14 per cent to RM6.8 million in the second quarter from RM5.9 million previously.
Contribution from its medical device segment, which was established in June last year, more than tripled to RM1.3 million in the second quarter from RM400,000 previously.
“This was on the back of increased adoption of the Nihon Kohden range of medical devices distributed under the segment,” it said.
LKL managing director Lim Kon Lian reiterated the company’s strategy to expand its product offerings.
“We will continuously add new and innovative products as we strive to offer comprehensive solutions to support our clients’ advanced operating requirements.
“Our venture into medical device distribution started with the Nihon Kohden brand, and was followed shortly by dermaPACE by Sanuwave Health Inc.”
Lim said LKL recently signed a memorandum of understanding with Agrow Corp Sdn Bhd to promote and market Breathair merchandise globally.
“We are optimistic that our ever-broadening range of solutions will prove to be a keen competitive advantage,” he said.
In the first half, the group’s revenue rose 43.9 per cent to RM17.3 million from RM12 million a year ago due to higher contribution across all segments.
LKL registered a net profit of RM200,000 in the first half compared to a net loss of RM600,000 a year ago.
On its prospects, Lim said the group would continue to leverage its extensive domestic sales network and identify opportunities to increase the number of overseas distributors and agents to grow its market presence.
“We will also remain dedicated to driving operating efficiency by increasing automation, streamlining manufacturing processes and providing training to our employees to improve productivity,” he added.