MAIN Market plywood products manufacturer Annum Bhd (formerly Cymao Holdings Bhd) has started its new financial year with strong momentum as evident from both its revenue and net profit edging up year-on-year (yoy) for its 1Q FY2022 ended March 31, 2022.
Annum highlighted in a Bursa Malaysia filing yesterday (May 20) that its revenue spiked by 43.9% to RM66.73 mil during the period under review from RM46.11 mil in the corresponding quarter a year ago.
However, this marks a 31.8% decline quarter-on-quarter (qoq) from RM97.32 mil in 4Q FY2021 which the company attributed to a decrease in sales volume of plywood and polyester plywood.
In line with the higher revenue, Annum also saw its net profit surged by 44.8% in its 1Q FY2022 to RM11.55 mil from RM7.98 mil in 1Q FY2021 on the back of bargain purchases by its customers.
Nevertheless, its net earnings for the current quarter was again lower qoq by 13% from RM13.28 mil posted in its 4Q FY2021 due mainly to an increase in operating expenses and finance costs.
“Higher revenue derived from the higher sales of plywood and polyester plywood is among some of the factors that have boosted the company’s earnings during the quarter (1Q FY2022),” Annum noted in a media statement.
Going forward, the group stressed the need to monitor, re-assess its financial position, and take appropriate and timely action to minimise adverse impacts from the COVID-19 pandemic.
“Measures will be undertaken to streamline our plywood business to improve the efficiency of our operations. This will help us to maintain our margin despite the inflationary pressures globally,” Annum pointed out.
“Aside from that, the group will also explore Industrial 4.0 technology to diversify away from its reliance on the construction and trading businesses.”
At the close of yesterday’s (May 20) trading, Annum was up 4 sen or 8.7% to 50 sen with 22.92 million shares traded, thus valuing the company at RM49 mil. – May 21, 2022
