Perstima’s 3Q net profit slips 37.5% on lower sales volume

by SHAZNI ONG/ pic credit:

PERUSAHAAN Sadur Timah Malaysia Bhd’s (Perstima) net profit fell more than a third for its third quarter ended Dec 31, 2019 (3QFY20) due to lower sales volume despite higher profit margin during the period.

The tinplate producer and supplier’s net profit fell 37.55% year-on-year (YoY) to RM6.32 million from RM10.13 million recorded in the same quarter previous year, while revenue for the quarter slipped 14.27% YoY to RM203.59 million from RM237.48 million due to lower sales volume coupled with lower selling price.

Perstima said its operations in Malaysia recorded a lower profit before tax (PBT) of RM6.2 million compared to RM14.18 million due to a dividend income of RM8.3 million from subsidiary company in the previous quarter, coupled with lower sales volume despite higher profit margin for the current quarter.

Revenue recorded was lower at RM144.6 million compared to RM164.4 million in the previous quarter.

Its subsidiary in Vietnam reported a PBT of RM2.5 million, falling 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 first nine month, Perstima cumulatively 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 RM668.3 million from RM747.83 million.

Perstima in a Bursa filing yesterday said the group’s growth and profitability will be affected by the continued combination of a higher presence of imports, and the uncertainty and volatility of 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 and marketing efforts particularly in light of an anticipated increase in demand due to the upcoming festivities,” it said the statement.

Shares in Perstima closed 0.24% or 1 sen higher at RM4.16 yesterday, valuing the company at RM413.11 million.