KUALA LUMPUR (Feb 9): Asia Brands Bhd saw its net profit increase by 6.87% year-on-year to RM3.86 million for the third quarter ended Dec 31, 2020 (3QFY21) despite revenue declining by 17.25% to RM42.2 million.
For the cumulative nine months ended Dec 31, 2020 (9MFY21), the firm’s net profit increased by 41% to RM13.43 million from RM9.52 million a year prior. Revenue for the period came in lower at RM126.11 million, falling 15.8% from the RM149.77 million achieved a year prior.
In a statement to Bursa Malaysia, the company noted that the lower revenue and higher profit were due to revenue rationalisation with cost management undertaken during the Movement Control Order (MCO) and lower finance cost following repayment of borrowings.
From a quarter-to-quarter perspective, Asia Brands’ 3QFY21 net profit is down 27.9% from RM5.35 million in the immediate preceding quarter, due to weaker consumer sentiment.
In response to the evolving Covid-19 pandemic, Asia Brands said the company continues to adhere to its plans to keep its employees and customers safe, as well as ensuring continuous operations and business continuity.
“In addition, our supply chain partners remain supportive,” noted the baby clothes and lingerie retailer whose brands include Anakku and Audrey.
“Our business so far has remained resilient despite the impact of MCO/RMCO. We have also benefitted from the stimulus packages offered by the Malaysian government which helped to manage our expenses. Moving forward we will remain cautiously optimistic of a recovery in our financial year as the market becomes more challenging after the loan moratorium ends and the re-imposition of MCO,” it added.
Shares in Asia Brands were trading 5.1% or 3.5 sen lower at 65 sen at the time of writing, translating into a market value of RM151.22 million. It saw 8,400 shares done.