KUALA LUMPUR (Oct 28): Pensonic Holdings Bhd saw its net profit for the first quarter ended Aug 31, 2014 (1QFY15) dropping 43.15% to RM2.2 million, from RM3.89 million a year ago, due to having inventories written down.
Quarterly revenue however grew marginally by 3.04% to RM106.03 million, from RM102.9 million in 1QFY14, underpinned by a 20.7% increase in sales from oversea demand.
In the same period, earnings per share shed almost half to 1.7 sen, from 3 sen.
Pensonic told Bursa Malaysia in a filing today that its revenue rose 18.3% or RM16.4 million to RM106.03 million, from RM89.65 million in the immediate preceding quarter, due to higher local and overseas market demand during the festive season, which went up 6% and 56.8% respectively.
It also recorded a pre-tax profit of RM1.9 million in the 1QFY15, as compared to pre-tax loss of RM2.7 million in 4QFY14, which it attributed to the write off of fixed assets, impairment of receivables and inventories written down.
On prospects, Pensonic anticipates competition to remain intense, but said it will continue growing existing markets and restructuring its initiatives such as phasing out of low margin products, while it focuses on cost control.
"In line with the group's effort in expanding emerging markets, the group [will] carry on promoting and selling its products to overseas customers, through engaging more overseas distributors and business partners, [and] expanding overseas market footprint through acquisitions, where necessary," it added.
Additionally, it said it will continue to devote efforts in research and development of new products, “in order to keep up with the ever-changing needs of the electrical appliances markets”.
“Given our extensive experience in the industry, the board believes that the group can overcome the temporary challenges in the market and remain competitive for the coming period,” it added.
Pensonic closed the day unchanged at 46 sen, with a thin trading volume of 35,000, giving it a market capitalization of RM59.65 million.