Perstima’s pretax profit in the current quarter of RM25m was higher than the RM15m it made in the previous year’s due to dividend income from a subsidiary
by SHAZNI ONG / source: perstima.com.my
PERUSAHAAN Sadur Timah Malaysia Bhd’s (Perstima) earnings for the second quarter ended Sept 30, 2020 (2Q21), surged 82.42% year-on-year (YoY) to RM15.22 million on better profit margin despite lower sales volume during the period.
Revenue, however, slipped 7.28% YoY to RM222.49 million on lower sales volume coupled with lower selling price, the tinplate producer and supplier said in a filing to Bursa Malaysia yesterday.
For Malaysia, Perstima’s pretax profit in the current quarter of RM24.8 million was higher than the RM14.8 million it made in the previous year’s corresponding period due to dividend income from a subsidiary of RM12.4 million which helped cover lower sales volume and lower profit margin during the current quarter.
“Revenue decreased by RM14.1 million (8.6%) compared to the previous year’s corresponding period due to lower sales volume coupled with lower selling price,” it said.
As for its Vietnam operations, Perstima made a pretax profit of RM7.5 million for the quarter compared to RM4.5 million in the previous year’s corresponding period due to higher sales volume coupled with better profit margin during the quarter.
“The subsidiary company’s revenue decreased by RM3.7 million (4.6%) compared to the previous year’s corresponding period due to lower selling price despite higher sales volume,” it said.
For the Philippines, Perstima noted its subsidiary company’s loss before taxation for the quarter of RM400,000 was due to the preliminary cost related to the rental and administration fees during the current quarter.
“The subsidiary companies did not have any revenue during the current quarter since it was still at a preliminary stage after being registered on Nov 22, 2018,” it said.
For the first six cumulative months, Perstima’s net profit rose 28.47% YoY to RM25.66 million, while revenue fell 8.94% YoY to RM423.14 million.
On prospects ahead, Perstima expects the group’s growth and profitability to be affected by the continued presence of higher imports and the volatility of the ringgit against the US dollar exchange not to mention the significant economic and socio-economic effects of the unpredictable Covid-19 pandemic.
Despite the unpredictability, Perstima said the diverse locations in which the group’s manufacturing facilities are based — Malaysia, Vietnam and the Philippines — and the diverse markets in which the group sells its products, may help the group cushion any negative impact therefrom.
“The group will nevertheless apply its best efforts to continue to improve production efficiencies and cost savings, and to increase sales and marketing efforts (including exploring new markets) to ensure the profitability of the group for the current financial year,” it added.
Perstima’s shares closed 10.14% or 36 sen lower at RM3.22 yesterday, valuing the tinplate maker at RM319.76 million.