KUALA LUMPUR (Aug 18): Tomei Consolidated Bhd's net profit for the second quarter ended June 30, 2021 (2QFY21) fell 28.24% to RM1.36 million from RM1.89 million in the corresponding quarter last year, despite stronger revenue as gross profit margin fell amid increase in carrying cost due to higher gold prices last year.
Earnings per share shrank to 0.98 sen in 2QFY21 against 1.36 sen in 2QFY20, the company's filing with Bursa Malaysia showed.
Quarterly revenue, however, almost doubled to RM146.64 million from RM76.13 million a year before, mainly due to an increase in sales volume in both its retail and manufacturing and wholesale segments. Retail segment’s revenue grew to RM92.35 million from RM51.65 million a year ago — when sales was impacted by the lockdown — while its manufacturing and wholesale segment's revenue more than doubled to RM54.29 million from RM24.48 million.
On a quarter-on-quarter basis, Tomei's sales were negatively impacted by the June lockdown, which resulted in net profit falling 90.14% from RM13.76 million in 1QFY21, while revenue declined 39.94% from RM244.16 million.
Nonetheless, for the cumulative six months ended June 30, 2021 (2QFY21), Tomei's net profit jumped 156.33% to RM15.12 million from RM5.9 million a year ago, as revenue surged 91.63% to RM390.8 million from RM203.93 million.
On prospects, the group said the gradual reopening of the economy is a positive sign for its business recovery, given the jewellery business was allowed to reopen from Aug 16 after the the government allowed some relaxation of restrictions for non-essential economic sectors.
"Nevertheless, we foresee it could take a while before we can expect the return of consumer sentiment," it added.
Tomei's shares fell 0.5 sen or 0.54% to close at 92 sen today, bringing it a market capitalisation of RM128 million. The counter saw 179,200 shares traded.