KUALA LUMPUR (Aug 27): Panasonic Manufacturing Malaysia Bhd’s net profit grew 7.76% to RM27.09 million in the first quarter ended June 30, 2019 (1QFY20) from RM25.14 million a year ago, thanks to lower derivative loss.

Its earnings per share were up to 45 sen against 41 sen last year. This was despite a 4.64% decline in its quarterly revenue to RM291.4 million versus RM305.57 million in 1QFY19.

According to a filing with the local stock exchange today, Panasonic’s derivative loss amounted to RM895,000 versus RM11.37 million in the previous year’s corresponding quarter. However, Panasonic noted that both its segments, namely home appliance product’s segment and the fan and other products’ segment, saw lower profit before tax (PBT).

Its home appliance product’s segment PBT declined 20.9% to RM10.8 million in 1QFY20, while the fan and other products’ segment PBT slid 7.4% to RM23 million.

Nonetheless, profit from operations grew 12.4% to RM36.07 million compared with RM32.09 million in 1QFY19.

Panasonic attributed the lower revenue to mainly lower sales in the export market for Home Appliances products.

“The exports to the Middle East market has been affected by trade sanctions imposed by the US government on certain Middle East countries; coupled with liquidity issues faced by a major distributor in a certain country within this region,” the company said.

On prospects, Panasonic said the company is cautiously optimistic with regards to its prospects despite the current challenging environment, adding that it will continue to strengthen its manufacturing capabilities through the continued expansion of robotic and automation systems in its facilities.

“The enhancement in the IT system as well as the ongoing training programs for the operational staff within the Company will further improve the Company’s productivity,” said Panasonic.

Shares of Panasonic closed 28 sen higher at RM40.90 today, valuing the company at RM2.49 billion.