KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd (KPS) recently reported a firm set of financial results as its net profit jumped 254.8% to RM11mil in the quarter ended March 31,2021 from RM3.1mil a year ago on stronger revenue growth.
KPS, which is involved in infrastructure and manufacturing, recently announced its revenue grew by 31.6% to RM308.4mil from RM234.4mil. Its operating profit increased by 35.4% to RM24.3mil from RM17.9mil.
Revenue from its manufacturing business rose 43.8% to RM267mil from RM185.7mil a year ago.
The manufacturing business comprising Toyoplas Manufacturing (Malaysia) Sdn Bhd, Century Bond Bhd (CBB), CPI (Penang) Sdn Bhd (CPI) and King Koil Manufacturing West LLC (KKMW) accounted for 86.6% of group revenue.
“With better sales performances from its Indonesia, China, Malaysia, and Vietnam operations, Toyoplas led the revenue contribution with RM125.7mil compared with RM76.1mil contributed in the corresponding quarter last year, ” it said.
CBB’s contribution also increased to RM59.1mil from RM48mil, underpinned by the offset and carton divisions.
Notably, CPI recorded RM50.8mil in revenue, sharply higher than RM11.6mil a year ago due to its healthcare and other industry segments, as well as from the EMS business.
KPS said KKMW contributed RM27.2mil to manufacturing revenue compared with RM5.5mil a year ago. It attributed this to improved retail sentiment and optimism in the US.
The mattress manufacturing revenue was also supported by OEM contribution from King Koil Sales Inc. amounting to RM4.2mil, which was previously recognised under the licensing business.
KPS said under its trading business, Aqua-Flo Sdn Bhd contributed RM26.6mil down from RM32.7mil a year ago due to lower sales of chemicals because of relatively dryer season during the quarter.
KPS managing director and group CEO Ahmad Fariz Hassan described 1QFY21 as a strong start due to its geographical and sectoral diversified business.
“Businesses globally have started to show a positive sign of improvement, sequentially keeping the recovery momentum,” he said, as the end markets reported generally improving conditions
“Operationally, Toyoplas, CPI and KKMW experienced what we believe was a short-term raw materials cost inflation that had impacted our industry, suppliers, and customers, consequently affecting some of our operations,” he said. This reduced the group’s gross profit margin to 18.4% from 22.4% a year ago.
“The strong show of growth in revenue and operating profit, as well as in profit attributable to the owner of the parent by more than three-fold were indeed driven by our long-term business catalysts, a testament to the successful execution of our business strategy in bridging the recovery, aimed at strengthening the group’s fundamental resilience further, ” Fariz said.