Thursday 28 Mar 2024
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KUALA LUMPUR (April 27): RGT Bhd's net profit for the third quarter ended March 31, 2021 (3QFY21) surged 396% to RM3.03 million, from RM610,000 a year earlier, on strong revenue growth.

Revenue jumped 110% to RM32.29 million, from RM15.4 million, on the back of strong increase in demand for hygiene care products such as sanitisers and soap dispensers, the group said in a bourse filing.

However, when compared with the immediate preceding quarter, the 3QFY21 net profit was down 26% from RM4.09 million,  while revenue declined 29% from RM45.37 million.

The hygiene care products manufacturer explained that the lower sequential performance was due to the reintroduction of containment measures in North America and Europe, amid the resurgence of Covid-19 cases there.

"Such measures disrupted not only shipping schedules but also the ability of our overseas customers from delivering the finished products to their customers to such an extent that their storage and warehouses are congested," said RGT.

The decrease in demand was also due to the lesser orders received from its customers resulting from the increasing global shipping costs, RGT added.

The group went on to caution of further deferments of orders and deliveries in 4QFY21.

For the cumulative nine months ended March 31, 2021, RGT said its net profit grew by four times to RM11.38 million or 1.74 sen per share, from RM2.83 million or 0.49 sen per share a year ago, while revenue ballooned 133.4% to RM119.41 million, from RM54.16 million.

"With a record nine-month performance and a healthy financial position, RGT has been laying the foundation for a global economic recovery. New customers and new products will be our key targets for the medium to long term," the group's chief executive officer and executive director Datuk Lim Seat Hoe said in a statement.

Still, beyond the current disruptions, the group expects the demand for its current products and new products to grow in light of the US-China trade war and also the global economic recovery.

It added that it has secured the final approval from a substantial customer to proceed with the development of multiple types of hand sanitisers and soap dispensers with enhanced features and functions.

"Management is re-engaging with new customers after product development progress was delayed because of the outbreak of Covid-19," said RGT.

RGT also said that its ongoing plant expansion is progressing well, noting that the new facility should be ready by October 2021.

RGT's shares closed two sen or 4.49% lower at 42.5 sen today, valuing the group at RM277.13 million. Over the past year, the counter has gained 183% from 15 sen.

The stock peaked at 68 sen on Nov 10 last year after trading mostly above 60 sen in the prededing two months.

Edited ByS Kanagaraju
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