KUALA LUMPUR (Feb 16): Tomei Consolidated Bhd's net loss for the fourth quarter ended Dec 31, 2014 (4QFY14) widened to RM4.24 million from RM252,000 in 4QFY15, due to losses arising from foreign exchange and gold price fluctuations. 

The year-on-year difference in earnings was also due to a gain on disposal of a subsidiary company amounted to RM2.311 million in the previous corresponding quarter, Tomei noted in its filing to Bursa Malaysia today.

Revenue for the quarter advanced to RM150.42 million, up 5.55% from RM142.51 million.

Loss per share (LPS) stood at 3.06 sen a share versus 1.8 sen a share last year. 

Despite the weaker 4Q earnings, for the full FY14, Tomei has returned to black with a net profit of RM1.12 million against a net loss of RM4.41 million in FY13, due to the group's improving profit margin. 

Revenue for FY14, however, had declined 19.53% to RM564.8 million from RM701.91 million in FY13, which had seen a surge for demand for gold and gold-related jewelry due to the drastic drop in gold price.

Hence, FY14 earnings per share stood at 8.1 sen compared with the loss per share of 3.18 sen last year. 

The retail division reported revenue of RM428.472 million in FY14 as compared to RM518.322 million recorded last year. Due to lower sales and loss arising from foreign exchange and gold fluctuation, the retail segment reported a loss before tax (LBT) of RM0.397 million as compared to a profit before tax (PBT) of RM0.266 million reported in the last financial year.

The wholesale and manufacturing division reported sales of RM136.327 million in FY14 as compared to RM183.59 million recorded last year. Despite it reported lower sales, this segment reported a PBT of RM5.910 million as compared to a LBT of RM4 million in the last financial year. 

"During the last financial year [FY13], the M&W has written down its stock amounted to RM 1.803 million while part of the write down amounting to RM1.054 million was subsequently reversed during the year," it added. 

Going forward, Tomei said the retailing conditions in Malaysia will remain challenging in the next financial year (FY15) amidst a backdrop of falling oil prices, weaker ringgit and the enforcement of the Goods and Services Tax (GST) on April 1. 

"Notwithstanding [the above], the board expects the group to perform reasonably," it added. 

Its share price closed 1 sen or 1.8% higher at 56.5 sen, bringing it a market capitalisation of RM76.92 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)