Thursday 28 Mar 2024
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KUALA LUMPUR (March 12): Furniture maker Wegmans Holdings Bhd saw its net profit for the fourth quarter ended Dec 31, 2020 (4QFY20) increase by 4.7 times to RM4.75 million, from RM1.01 million in the previous year's corresponding quarter.

In a bourse filing, the group said its net profit rose on the back of higher revenue during the quarter — up by 75.49% to RM41.14 million from RM23.44 million in 4QFY19 — underpinned by higher sales volume in North America.

In a separate statement, Wegmans said its exports to North America in 4QFY20 jumped 1.7 times to RM31.93 million from RM11.99 million in 4QFY19. For the financial year ended Dec 31, 2020 (FY20), exports to North America contributed about RM71.62 million, which is 87.8% higher than RM38.14 million recorded in FY19.

Its revenue in the latest quarter was 35.24% higher than RM30.42 million in the immediate preceding quarter; however, its net profit declined from RM4.86 million posted in 3QFY20.

Consequently, earnings per share (EPS) for 4QFY20 stood at 0.95 sen, compared with 0.2 sen in 4QFY19. However, it was lower than 0.97 sen in 3QFY20.

For the full financial year, the group’s net profit was up 10.25% at RM8.76 million, from RM7.94 million in FY19. Full-year revenue rose 25.96% to RM107.53 million, from RM85.63 million in the previous corresponding financial year.

EPS for FY20 rose to 1.75 sen from 1.59 sen a year ago.

Wegmans’ executive director Collin Law said in a separate statement that the group has seen a strong recovery in its business operations in the second half of its most recent financial year (2HFY20), led by the strong growth in its key export market in North America.

“Going into FY21, we expect another challenging year amidst the lingering impact of [the] Covid-19 pandemic. We are however optimistic to maintain our momentum growth as the group has taken advantage of the window opportunity to expand its capacity after winning some new key client in the United States,” Law said.

The firm noted that this new client is a Forbes 500 company that is “known for its choice and prime beef, organic foods and wine”.

It also noted that it has installed new machinery at its new factory in Johor to increase automation in its efforts to reduce reliance on foreign labour.

An additional RM20 million has been earmarked for its expansion plan, which includes the construction of two new factories for manufacturing production, finishing line and automation machinery mainly for clients from the United States, it added.

Shares in Wegmans were 7.46% or 2.5 sen higher at 36 sen at noon market close, valuing it at RM180 million. It saw 21.79 million shares done.

Edited ByLam Jian Wyn
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