HAVING been in the red since its FY2017, packaging and printing solution provider-turned- mask manufacturer Komarkcorp Bhd has returned to profitability in its 2Q FY4/2022 ended Ovt 31, 2021 albeit with a meagre net profit of RM107,000 (2Q FY4/2021: net loss of RM960,000).
What is encouraging nevertheless is that the company posted a 120% jump in revenue to RM18.16 mil during the period under review (2Q FY4/2021: RM8.26 mil) buoyed by higher revenue from both its label and packaging division as well as the new mask division.
For the cumulative six-month period, Komarkcorp’s net loss narrowed to RM2.54 mil from RM4.1 mil in 6M FY4/2021 while its revenue nearly doubled to RM31.57 mil (6M FY4/2021: RM16.94 mil).
Elated with what he deemed as “back on solid financial performance” despite having to struggle past pandemic-related issues, executive director Roy Ho pins hope on a robust growth for Komarkcorp’s mask business in the days ahead.
“The demand for mask is expected to be greater as the world grapples with rampaging COVID-19 virus, and especially with the newly discovered Omicron variant posing higher infection risk according to experts,” he projected.
“Some countries have reinstated mask mandates aimed at curbing the spread of the infectious virus, not taking the risk of overwhelming healthcare facilities again. As such, wearing a medical grade face mask is the main priority that governments and healthcare specialists emphasise on.”
“While our order book remains encouraging and robust and is filled until March 2022, we anticipate more orders to come in from our customers in conjunction with the upcoming festive period from Chinese New Year until Hari Raya.”
At present, Komarkcorp is running 30 production lines at its Balakong plant while another 20 production lines will be installed at its new plant in Meru, Klang which is targeted to be fully operational by January 2022.
“Our entry into the production of face masks is to cushion any adverse impacts from the consumer packaging and printing services industry as we anticipate that the outlook for the industry remains challenging in the foreseeable future,
“However, the quarter-on-quarter growth of the business – with positive impact from the labelling and printing business linked to our OEM mask contracts – has shown an encouraging sign that this revenue segment will continue to grow and margins will improve as efficiency kicks in.”
At the close of yesterday’s (Dec 2), Komarkcorp was unchanged at 9.5 sen with 1.63 million shares traded, thus valuing the company at RM51 mil. – Dec 2, 2021