KUALA LUMPUR (March 24): Furniture maker Poh Huat Resources Holdings Bhd’s net profit for the first quarter ended January 31, 2022 (1QFY22) jumped 59.43% to RM15.35 million from 9.63 million from RM a year ago, thanks to better profit margins.
Its revenue for 1QFY22, however, fell 0.38% to RM182.96 million from RM183.66 million a year earlier, its filing with Bursa Malaysia showed.
The company declared no dividend for the last quarter.
It said following the production shutdowns under the Comprehensive National Movement Control Order 3.0 (FMCO 3.0), its Malaysian factories resumed operations on September 11, 2021 and production activities resumed from October 2021, with its workforce returning to normal levels.
Its productions and shipments were higher than those of the corresponding reference period of the previous year, as it increased its production to meet orders from American importers, which were placed during FMCO 3.0.
In Vietnam, the group saw a similar recovery in production and shipment levels following the resumption of operations at its two manufacturing plants in Binh Duong and Dong Nai districts in mid-October 2021.
While production activities were in full swing, he said shipments were lower due to logistical disruptions and higher shipping rates that delayed some shipments.
Nevertheless, while production activities have returned to normal levels, Poh Huat said its operating results have recovered at the Malaysian and Vietnamese facilities.
In particular, increased shipments from its Malaysian operations resulted in a significant improvement in gross profit from RM8.88 million in the previous corresponding reporting period to RM16.72 million for the current reporting period.
Despite lower furniture shipments, its Vietnamese business also enjoyed better profit margins as it consumed buffer raw materials that it was able to source earlier at relatively lower costs.
Overall, the group’s gross profit improved from RM28.36 million in the corresponding period of the previous year to RM35.64 million in the current reporting period.
Going forward, Poh Huat said it is working closely with all stakeholders to ensure the stability of its supply chain, the resumption and continuity of its manufacturing operations, and the rescheduling of order shipments to its clients so that the interests of all stakeholders are safeguarded.
“As before, our priorities now are to balance the safety and well-being of our staff while mitigating operational costs to ensure the viability of our business,” he said.
While demand for furniture remains strong, she pointed out that movement restrictions and concerns about the persistence of high cases and more contagious variants remain, and the group continues to face workforce challenges. ‘artwork.
“This has had a profound impact on the stability and sustainability of our supply chain, leading to supply shortages and higher material costs,” he said.
Poh Huat shares closed three sen or 2.11% lower at RM1.39, valuing the group at RM395.18 million.