Pecca net profit jumps 46% RM6.1m in 2Q21

by TMR / pic by TMR FILE

PECCA Group Bhd posted a net profit attributed to shareholders of RM6.1 million in the second quarter ended 31 December 2020 (2Q21), a 46.0% increase from RM4.1 million in the previous corresponding quarter (2Q20).

The strong performance was a result of stronger contributions from automotive leather car seat cover sales and growing healthcare segment.

In a statement the group said its revenue rose 25.8% to RM39.5 million in 2Q21 from RM31.4 million in 2Q20, from increased deliveries of car seat covers to automotive manufacturers amid higher domestic car sales.

The robust automotive sales was supported by the low interest rate environment, sales tax exemptions, and increased preference for car ownership during the pandemic.

Revenue from the group’s largest sales contributor, the automotive segment, grew 10.3% to RM34.4 million in 2Q21 from RM31.2 million in 2Q20.

Pecca’s new healthcare segment raked in RM4.8 million, while the aviation and furniture segment contributions were maintained at RM0.2 million.

“Our record performance in 2Q21 and consistent growth in two consecutive quarters shows a strong rebound since the first Movement Control Order in 2020, and our ability to deliver more car seat covers to clients such as Perodua and Proton. The extension of automotive sales tax exemption until 30 June 2021, along with upcoming launches of new models by automotive players is also expected to bolster the automotive sector in the near term.” said Group MD Datuk Kelvin Teoh.

He added the group recorded quarter-on-quarter revenue expansion in healthcare segment, as they received higher number of face masks orders from medical establishments, retail outlets and corporate customers.

“We are gradually ramping up production levels to meet the robust demand in Malaysia, and will continue to develop our export markets,” said Kelvin.

The Group noted improvements in its new healthcare segment in 2Q21, recorded 838.6% increase in revenue from RM0.5 million in the preceding first quarter ended 30 September 2020 (1Q21).

This was attributed to higher production and sales of 3- ply and 4-ply face masks on increased traction in the domestic market.

For the six months ended 31 December 2020 (1H21), the Pecca saw a 9.6% increase in group revenue to RM72.6 million in 1H21 from RM66.3 million in the last corresponding quarter (1H20) on increased sales to the automotive sector.

Group net profit attributed to shareholders also rose by 27.4% to RM11.2 million in 1H21 from RM8.8 million in 1H20 under the same circumstances.