KUALA LUMPUR (Aug 28): Inari Amertron Bhd reported a 13% year-on-year decline in net profit for its fourth quarter ended June 30, 2018 (4QFY18) to RM57.10 million from RM65.53 million, as its profit allocation to non-controlling interests jumped to RM9.76 million versus RM431,000 previously.

Quarterly revenue came in 13% lower at RM301.16 million, compared with RM346.01 million in 4QFY17, due to lower volume loading.

The group declared a fourth interim single tier dividend of 1.6 sen and a special single tier dividend of 0.4 sen per ordinary share, payable on Oct 5.

In a filing with the stock exchange today, Inari said its 4QFY18 profit after tax was only 1% higher than the corresponding period last year at RM66.9 million versus RM66 million previously, as it recognised higher income tax rates for the group's largest operating subsidiary, Inari Technology Sdn Bhd.

It also said its 4QFY18 profit before tax was up 12% at RM81.4 million versus RM72.4 million previously, mainly due to a gain on disposal of assets.

Its full-year net profit was 9% higher y-o-y at RM249.27 million versus RM227.76 million previously, as revenue grew 17% y-o-y to RM1.38 billion from RM1.18 billion.

Inari attributed its improved FY18 earnings to higher factory output demand and changes in product mix, besides a gain on the disposal of assets, despite higher depreciation cost and taxation.

The group said its current quarter's (1QFY19's) performance so far shows there are challenges in the RF segment for flagship smartphones while its optoelectronics segment continues to show resilience.

“For the new financial year ending June 30, 2019 (FY19), given current geo-political and geoeconomic uncertainties, the group remains cautious while continuing to work towards delivering positive performance from our continuing manufacturing activities with focus on managing costs and margins.

“The group also continues to work on new manufacturing projects in addition to looking out for investment opportunities to enhance its overall growth,” it added.

Shares in Inari closed two sen or 0.85% higher today at RM2.37, bringing its market capitalisaiton to RM7.5 billion.