Superlon 1Q net profit down 41% on lower manufacturing contribution

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KUALA LUMPUR (Sept 26): Superlon Holdings Bhd's net profit fell 41% year-on-year to RM3.57 million in the first quarter ended July 31, 2017 (1QFY18) from RM6.05 million in the corresponding quarter last year, dragged by lower sales and higher cost of materials in its manufacturing division.

In a filing with Bursa Malaysia today, Superlon said the lower other income and higher other operating expenses recorded during the quarter also contributed to the decline in net profit.

However, quarterly revenue rose 3% y-o-y to RM26.33 million from RM25.63 million.

The thermal insulation materials manufacturer said its manufacturing division registered a slight decline in revenue from RM24 million to RM23.3 million, while its trading division contributed RM3.1 million, up RM1.4 million from the same quarter last year due to higher sales of copper pipes to local customers.

Profit before tax (PBT) of the manufacturing division during the quarter declined y-o-y to RM4.4 million from RM8 million, while trading's PBT grew to RM200,000 from RM100,000.

"Barring any unforeseen circumstances and based on the present trend of demand, the board expects the group to achieve satisfactory results for the financial year ending April 30, 2018," the company commented on its outlook for the year ahead.

At market close, shares of the company were down 3 sen or 1.07% at RM2.76 for a market capitalisation of RM439.87 million.