Magni-Tech Q4 earnings up 13% to rM18.8mil

PETALING JAYA: Magni-Tech Industries Bhd saw its earnings rise 13.3% to RM18.8mil for the fourth quarter ended April 30, 2016, boosted by higher revenue from its garment business. The group’s revenue was up by 9.7% to RM193.9mil from a year ago, mainly due to the stronger US dollar and higher orders received in its packaging segment.

It said its revenue for the garment business was up by 9.4% due to the stronger US dollar, which partially offset the lower sales orders received.

Revenue of its packaging business increased 11.9% due to higher orders, it said in an announcement to Bursa Malaysia yesterday.

For the year, the group recorded a net profit of RM82.1mil, an increase of 57.3% from the previous year, while revenue was up 19.2% to RM854.1mil.

The group attributed the increase to its garment segment, which accounted for about 85.7% and 93.6% of its revenue and profit before tax, respectively, for the financial year.

It said revenue from its garment business increased by 22.7% mainly due to the strong US dollar, while revenue from its packaging business increased by 2.1% due to higher orders.

It said profit before tax for the year was up by 54.6%, attributed to higher revenue from the garment business, higher other operating income due to the favourable foreign exchange differences, and positive results from its ongoing productivity improvement and cost-control measures.

Moving forward, it said the manufacturing and sales of garments will continue to be the group’s major revenue contributor.