Mega First’s 3Q net profit falls 14.17% on lower revenue and increased costs

Mega First Corp Bhd reported a 14.17% drop in net profit for the third quarter ended Sept 30, 2023 (3Q23)  to RM102.53 million, attributed to lower revenue, reduced share of results in equity accounted investment, and lower other income. 

The company’s share of losses in equity accounted investments was RM3.96 million in 3Q23, compared to a share of profits of RM12.29 million previously. 

Other operating expenses and finance costs increased, with earnings per share dropping to 10.87 sen. 

Quarterly revenue declined by 13.77% to RM320.38 million, mainly due to the deconsolidation of Serudong Power Sdn Bhd and lower sales contribution from the resources and packaging divisions. 

Despite a 13.24% decline in net profit for nine-months period (9M23), the company expects better earnings in FY2023, particularly from its expanding solar portfolio. 

However, challenges are anticipated in the resource division due to soft lime product demand. 

The packaging division faces subdued demand, and a fire in one of its factories is expected to negatively impact profits in 4Q23. 

Mega First’s share price closed 1.69% lower at RM3.50 today, with a market capitalisation of RM3.46 billion. – TMR