Perstima 4Q earnings dented by forex losses

by NURUL SUHAIDI / source: perstima.com.my

PERUSAHAAN Sadur Timah (M) Bhd (Perstima) posted a 4% year-on-year (YoY) growth in net profit to RM14.44 million for the fourth quarter (4Q) ended March 31, 2022, on higher selling price and volume of tin products but offset by foreign exchange (forex) losses.

Revenue rose 87% YoY to RM419.9 million due to pricing power and higher sales volumes, its exchange filing yesterday revealed. Earnings per share for the quarter was 11.18 sen. 

Perstima has operations in Malaysia, Vietnam and the Philippines. The company stated the economic effects of the Covid-19 continue to linger and have been exacerbated by the ongoing Russia-Ukraine conflict.

Perstima anticipates rising cost of raw materials, disruptions in logistics and supply chains and the volatility of the ringgit to have an impact on its profitability.

Nonetheless, it added the completion of the construction of its new manufacturing facility and its diverse markets may help the group cushion any negative impacts.

In the recent quarter, its subsidiary in Vietnam recorded a revenue of RM165.8 million while the Philippines subsidiary is still at the preliminary stage of its operations.

Moving forward, Perstima aims to increase its sales and marketing activities and give its best efforts to improve production efficiencies and reduce costs to ensure the group is profitable for the coming financial year.

For the full year, Perstima posted a net profit of RM46.6 million and RM1.34 billion in revenue.

Perstima shares were last traded up four sen at RM3.55 a share.