KUALA LUMPUR (May 19): Tomei Consolidated Bhd's net profit for the first quarter ended March 31, 2022 (1QFY22) grew 14.63% to RM15.77 million from RM13.76 million a year prior because of a better profit margin.

Earnings per share were bumped up to 11.38 sen from 9.93 sen, the jeweller's filing on Thursday (May 19) showed.

Revenue in the quarter under review dropped 4.1% to RM234.15 million from RM244.16 million a year earlier, mainly caused by the decrease in revenue of its manufacturing and wholesale segment.

Tomei's retail segment reported a revenue of RM174.48 million for 1QFY22, an increase of 6% when compared with the RM164.57 million posted for the previous year's corresponding quarter.

The company attributed the increase to the strong demand received by the retail segment from customers following its aggressive marketing efforts coupled with the gradual reopening of the economy since August 2021.

"As a result of the higher revenue, the retail segment reported a higher profit before tax of RM17.7 million compared to RM16.18 million last year," it said.

Meanwhile, the group's manufacturing and wholesale segment posted a 32% decrease in revenue to RM60.73 million, from RM89.61 million in 1QFY21, mainly due to lower sales volume.

In terms of prospects, the group said Malaysia's transition period into the endemic phase of Covid-19 beginning April 1 has augured well for its business and the reopening of the borders also contributed to the recovery of the retail industry.

"However, the unresolved Russia-Ukraine conflict and the prevailing inflationary pressures worldwide may cause more headwinds for the global economy," it added.

The group said it is taking prudent measures to maintain its operational efficiency while monitoring the current situation in order to be sustainable in FY22.

Tomei's share price closed a sen or 0.99% lower at RM1 on Thursday, giving it a market capitalisation of RM138.6 million.