Latitude Tree posts record revenue for FY21 on higher demand for furniture in the US

Latitude Tree posts record revenue for FY21 on higher demand for furniture in the US
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KUALA LUMPUR (Sept 23): Latitude Tree Holdings Bhd's profit surged by more than six times to RM2.57 million in the fourth quarter ended June 30, 2021 (4QFY21), from RM407,000 a year ago, on the back of a higher revenue.

Earnings per share jumped to 2.06 sen from 0.33 sen, the furniture maker said in a filing with Bursa Malaysia.

Quarterly revenue increased 55.9% year-on-year to RM216.02 million from RM138.56 million.

On a quarter-on-quarter basis, however, Latitude Tree's earnings and top line were lower. Net profit fell 77.8% from RM11.56 million in the preceding quarter, while revenue was down by a marginal 0.29% from RM216.66 million.

The group blamed the lower earnings to the higher tax provisions compared with the preceding quarter.

It was also due to lower sales and production output recorded by the group's plants in Malaysia amid the full lockdown effective from June 1, although this was partly offset by the higher sales recorded by its furniture plant in Vietnam.

For the full financial year, Latitude Tree saw its net profit jump 220.39% to RM53.79 million, from RM16.79 million in the previous year.

Full-year revenue expanded 33.18% to an all-time high of RM911.94 million, from RM684.74 million previously.

The group attributed the substantial increase in full-year revenue to higher furniture sales on stronger demand in the United States, and higher local sales recorded by its Malaysian saw mill plant and panel board lamination plant due to pent-up demand.

Latitude Tree has proposed a final dividend of three sen per share.

The group's share price closed one sen or 0.61% lower to RM1.62 today, valuing the group at RM315 million.

S Kanagaraju