KUALA LUMPUR (Feb 22): Lii Hen Industries Bhd posted an 18.83% drop in fourth-quarter net profit to RM15.38 million, from RM18.95 million a year ago, on the back of higher labour operating cost.

Earnings per share (EPS) for the quarter ended Dec 31, 2017 (4QFY17) fell to 8.55 sen from 10.53 sen previously, the furniture maker said in a stock exchange filing today.

Revenue rose 9.73% to RM184.91 million, from RM168.51 million in 4QFY16, mainly due to higher sales generated. However, the increase was partly offset by the recent depreciation of the US dollar against the ringgit.

The group also declared a special interim single tier dividend of 8 sen, payable on March 27, 2018, bringing total payout to RM14.4 million in respect of the financial year ended Dec 31, 2017 (FY17).

For the full year (FY17), Lii Hen’s net profit dipped 2.26% to RM71.62 million against RM73.28 million in FY16, while revenue clocked in 15.09% to RM717.54 million, from RM623.46 million a year earlier.

Going forward, Lii Hen said the main challenges the group faces are the acceleration of production costs and workforce shortages, which would affect Lii Hen's financial performance.

“The recent weakening of the US dollar will affect the group’s operating results, financial performance and liquidity,” the filing read.

Lii Hen would continue to focus on the group’s core products by diversifying its product range to strengthen its market position and expand its customer base.

“With better controllable cost structure and wider sales market base, the group is committed to delivering a favourable result for the year 2018,” Lii Hen added.

Shares of Lii Hen closed two sen or 0.62% lower at RM3.21 today, for a market capitalisation of RM577.80 million.