KUALA LUMPUR (May 20): Malaysian Pacific Industries Bhd, a member of Hong Leong Group, saw its net profit jump 31.5% year-on-year in its third quarter ended March 31, 2020 (3QFY20) to RM22.05 million from RM16.77 million, on higher revenue and foreign exchange gain.

The gains more than offset higher expenses and tax incurred during the quarter, its stock exchange filing today showed. Earnings per share rose to 11.59 sen compared with 8.82 sen in 3QFY19.

It declared a second interim dividend of 17 sen per share, payable on June 23.

The group's revenue during the quarter rose 13.99% to RM376.29 million from RM330.11 million previously. “Revenue for Asia and USA segments were both higher by 25% and 9% respectively, while the Europe segment was lower by 7% against the corresponding quarter in 3QFY19,” MPI said.

For the cumulative nine-month period ended March 31, 2020 (9MFY20), MPI's net profit was 5.77% higher at RM103.94 million versus RM98.27 million in the corresponding period the year before, amid higher operating income as revenue rose 1.5% to RM1.16 billion from RM1.14 billion.

The topline increase was primarily due to stronger contribution from its Asia segment, which rose 7% to RM737.88 million. Its USA and Europe segments, however, saw revenue decline by 10% and 6% respectively, to RM158.23 million and RM258.15 million.

On prospects, MPI said the impact of the US-China trade war has been compounded by the COVID-19 pandemic, the effects of which have yet to be fuly assessed.

“The Malaysia Movement Control Order (MCO) has also adversely affected the group’s productivity in the last few months and is expected to continue in the foreseeable months ahead.

“In anticipation of these challenges and backed by a strong balance sheet, the group is taking cost-containment measures, and re-assessing its business portfolio to mitigate the adverse impact of events beyond the group’s control,” it added.