Able Global sees 36.8 pct improvement for F&B as demand rises
JOHOR BAHRU: Able Global Bhd (Able Global) recorded revenue of RM139.14 million for its third quarter ended September 30, 2022 (3QFY22), registering an increase of 18.1 per cent as compared to RM117.83 million recorded 3QFY21.
For the quarter under review, the group posted RM12.60 million in profit before tax (PBT), which is a rise of 2.1 per cent from the RM12.34 million recorded in 3QFY21, while the group’s profit after tax (PAT) registered a minor decrease of 4.9 per cent to RM8.37 million as compared with RM8.80 million recorded in 3QFY21.
For segmental review, the revenue for the food and beverage (F&B) segment stood at RM113.03 million, an increase of 36.8 per cent as compared to RM82.63 million in 3QFY21.
This was mainly attributable to the increase in sales demand from the customers and in part due the higher selling prices to mitigate with the higher raw material cost in the current quarter.
Correspondingly, the revenue for the tin cans manufacturing segment decreased by 25.8 per cent to RM26.11 million during this quarter under review, as compared to RM35.20 million in 3QFY21, resultant from the lower sales demand of tins for the current quarter.
For the nine-month period ended September 30, 2022 (9MFY22), the group posted RM422.05 million for its revenue, representing an increase of 19.8 per cent as compared to RM352.18 million in 9MFY21.
However, with the higher cost of sales, Able Global registered RM34.13 million and RM25.54 million for its PBT and PAT, representing a decrease of 14.3 per cent and 15.4 per cent as compared to RM39.82 million and RM30.18 million respectively for 9MFY21.
The management expressed, “We are delighted to register a respectable performance for the current quarter while the business landscape in the tins can manufacturing and F&B industry are steadily improving.”
“For our F&B segment, we expect global demand for dairy to remain optimistic. This is because the dairy commodity markets remained stable over this quarter and the freight costs to some destinations came down as well.
“Not only this is good news for us, but also to the industry and the end customers as the lower freight costs allows our exports to be more affordable as well as more competitive in the destination countries.”
As for the tin cans manufacturing segment, management noted that the business environment has stabilised in the short term.
“With the cost of steelmaking showing signs of stabilising, the outlook for the tin cans industry is optimistic. Thus, we believe that our tin cans manufacturing segment will remain in profitability in the foreseeable future.”