Tomei foresees severe impacts if CMCO prolongs

by RAHIMI YUNUS / pic credit: ANNUAL REPORT

TOMEI Consolidated Bhd foresees financial impact if a drop in consumer traffic flow at shopping malls continues for a longer period due to the Conditional Movement Control Order (CMCO).

The government has announced the implementation of the CMCO in the state of Selangor, Kuala Lumpur and Putrajaya since Oct 14, 2020, as a measure to contain and break the chain of infection of the virus.

Businesses are allowed to operate with strict compliance to the standard operating procedures as prescribed by the Ministry of Health.

“In view of this, we notice that customer traffic flow in the shopping malls has decreased significantly. Should this condition prolong, our business could be severely affected,” the company said in an exchange filing yesterday.

The jeweller said it will continue to monitor the current situation and take necessary measures to sustain its operation.

Tomei registered higher sales volume and selling price in both retail, and manufacturing and wholesale segments in the third quarter ended Sept 30, 2020 (3Q20).

Tomei’s net profit for 3Q20 jumped more than six times to RM13.6 million from RM2.08 million a year ago, driven by better profit margin.

Revenue climbed 52.1%, or RM61.9 million to RM180.6 million from RM118.7 million a year ago.

For the financial year-to-date, the group posted total revenue and profit before tax of RM384.6 million and RM27.8 million respectively.

On the retail front, Tomei said revenue increased 33% to RM110.6 million as a result of better sales volume and higher selling price with many customers buying gold jewellery during the Hari Raya AidilAdha celebration.

In the manufacturing and wholesale segment, the company said revenue almost doubled to RM70 million, which is attributable to the higher selling price.