KUALA LUMPUR (Oct 13): Atlan Holdings Bhd returned to the black in the second quarter ended Aug 31, 2022 (2QFY23) with a net profit of RM2.61 million compared with a net loss of RM9.26 million in the same quarter last year, thanks to improved revenue contributions from the group's duty free and automotive segments.

Quarterly revenue swelled over four times to RM87.76 million from RM19.34 million in the same period a year ago.

However, no dividend was announced for the quarter under review, while a dividend of five sen per share was declared for the same period last year, its Bursa Malaysia filing on Thursday (Oct 13) showed.

Earnings per share stood at 1.03 sen, compared with a loss per share of 3.65 sen for 2QFY22.

According to Atlan, its duty free segment recorded a higher revenue of RM34.2 million for 2QFY23 compared with 2QFY22's RM11.9 million, attributed to the full operations of its retail outlets in the quarter under review.

Revenue from the automotive segment for the quarter jumped more than 10 times to RM50.9 million, from RM4.4 million a year ago.

For the cumulative first half ended Aug 31, 2022 (1HFY23), Atlan posted a net profit of RM7.23 million compared with a net loss of RM5.83 million, whereas 1HFY23 revenue climbed 62.84% to RM165.13 million from RM101.41 million.

Looking ahead, Atlan expects the business environment in which it operates to remain challenging. 

However, the group, with its strong fundamentals, is cautiously optimistic that its operations and financial performance will gradually improve for the remaining quarters of the financial year ending Feb 28, 2023.

"To ensure that Atlan is well positioned to navigate through this challenging period, the group will continue to strategise, adapt and also will take timely appropriate measures in order to minimise operating risks and optimise its resources so as to ensure that its core businesses remain resilient and stable," it said.

Atlan's principal activities include the provision of management, financial, technical and other ancillary services, while its subsidiaries are involved in property investment, hospitality, auto components' manufacturing and trading of duty free and non-dutiable merchandise.

Atlan's share price closed unchanged at RM2.99 on Thursday, bringing the group a market capitalisation of RM758.4 million.