Panasonic's 2Q earnings tumble as manufacturing activities hit by lockdown restrictions; 15 sen dividend declared

Panasonic's 2Q earnings tumble as manufacturing activities hit by lockdown restrictions; 15 sen dividend declared
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KUALA LUMPUR (Nov 24): Panasonic Manufacturing Malaysia Bhd's net profit for the second quarter ended Sept 30, 2021 (2QFY22) dropped significantly to RM2.66 million, from RM40.04 million a year earlier, as its manufacturing activities were disrupted by the Movement Control Order restrictions.

Quarterly revenue declined 51.79% to RM141.73 million from RM293.96 million amid rising cost of materials and lower share of profit from its associate company, the group said in a Bursa Malaysia filing.

On a quarter-on-quarter basis, net profit dropped 85.11% from RM17.86 million in the immediate preceding quarter, while revenue fell 44.13% from RM253.68 million.

The group declared an interim dividend of 15 sen per share, to be paid on Jan 21.

For the cumulative six-month period ended Sept 30, 2021, Panasonic's net profit fell 45.24% to RM20.52 million from RM37.45 million in the same period last year, while revenue dropped 11.75% to RM395.4 million from RM448.05 million.

Moving forward, the group is optimistic that the second half of the financial year will see a better performance despite the challenges faced with increasing raw material prices and supply chain disruptions, as operations recover.

"In the immediate term, the company will try to fulfil the backlog orders of which delivery has been delayed during the quarter under review," it said.

Shares in Panasonic ended 10 sen or 0.33% lower at RM29.90, giving the group a market capitalisation of RM1.82 billion.

S Kanagaraju