• Disrupted supply and weaker demand affected manufacturing business, with heavy expenses thinning operating profits
• Impairment loss recognised on asset held for disposal and investment property
• Long-term business strategy and value creation plans expected to leap Group prospect beyond 2020.
SHAH ALAM, Aug 28 (Bernama) -- Kumpulan Perangsang Selangor Berhad (“KPS” or “the Company” or “the Group”, Bursa: 5843; Bloomberg: KUPS MK; Reuters: KPSB.KL) today reported a 39% year-on-year (“YoY”) growth in revenue to RM221.5 million for the quarter ended 30 June 2020 with the recognition of Toyoplas Manufacturing (Malaysia) Sdn Bhd’s (“Toyoplas”) contribution in the second quarter this year. However, COVID-19 has put a damper on the performance of KPS’ manufacturing business which saw a decline in capacity utilisation of its packaging, plastic injection moulding and mattress manufacturing plants. With expenses far exceeding the gross profits and lower share of profit from the associates, compounded by RM7.9 million impairment loss which was recognised on investment property and asset held for disposal, the Group recorded an operating loss of RM1.6 million. Consequently, the Group posted a reverse in earnings in the second quarter, registering RM11.4 million Loss Attributable to the Owners of the Parent.
HIGHLIGHTS FOR THE QUARTER ENDED 30 JUNE 2020
Financial and Business Performance
Manufacturing business recorded 62% revenue growth YoY, contributing RM177.9 million to the Group’s revenue as compared to RM109.7 million in the corresponding quarter last year. At RM177.9 million, the manufacturing businesses that comprise Toyoplas, Century Bond Bhd (“CBB”), CPI (Penang) Sdn Bhd (“CPI”) and King Koil Manufacturing West LLC (”KKMW”), contributed 80% to the Group’s revenue. During the quarter under review, the global pandemic had subject KPS’ manufacturing business in the China, Malaysia and the United States of America (“the US”) to a temporary halt in operation at the advent stage of the outbreak in response to the movement control orders (“MCO”) in the respective localities. Disrupted supply chain delayed deliveries of some input materials and restricted production capacity while order volume for several core products turned lethargic as demand weakened due in part to the customers’ production suspension.
Toyoplas led the revenue contribution to RM87.8 million. This was followed by CBB, contributing RM44.1 million, lower than that in the corresponding quarter in the previous year by RM3.7 million, on lower traction from the paper, carton, and plastics divisions. The offset division partly made up for the moderation in sales in the other divisions. CPI contributed RM33.9 million, also lower than what posted in the corresponding quarter last year by RM8.7 million. CPI’s revenue decline was felt across automotive, healthcare and communication & IT business segments except in other segment whose increase was supported by a new customer and steady orders from existing customers. KKMW contributed the remaining revenue of RM12.1 million, lower than that in the corresponding period last year by RM7.1 million, mostly due to state lockdown in California and Arizona for from late-March until mid-May 2020.
http://mrem.bernama.com/viewsm.php?idm=38028
• Long-term business strategy and value creation plans expected to leap Group prospect beyond 2020.
SHAH ALAM, Aug 28 (Bernama) -- Kumpulan Perangsang Selangor Berhad (“KPS” or “the Company” or “the Group”, Bursa: 5843; Bloomberg: KUPS MK; Reuters: KPSB.KL) today reported a 39% year-on-year (“YoY”) growth in revenue to RM221.5 million for the quarter ended 30 June 2020 with the recognition of Toyoplas Manufacturing (Malaysia) Sdn Bhd’s (“Toyoplas”) contribution in the second quarter this year. However, COVID-19 has put a damper on the performance of KPS’ manufacturing business which saw a decline in capacity utilisation of its packaging, plastic injection moulding and mattress manufacturing plants. With expenses far exceeding the gross profits and lower share of profit from the associates, compounded by RM7.9 million impairment loss which was recognised on investment property and asset held for disposal, the Group recorded an operating loss of RM1.6 million. Consequently, the Group posted a reverse in earnings in the second quarter, registering RM11.4 million Loss Attributable to the Owners of the Parent.
HIGHLIGHTS FOR THE QUARTER ENDED 30 JUNE 2020
Financial and Business Performance
Manufacturing business recorded 62% revenue growth YoY, contributing RM177.9 million to the Group’s revenue as compared to RM109.7 million in the corresponding quarter last year. At RM177.9 million, the manufacturing businesses that comprise Toyoplas, Century Bond Bhd (“CBB”), CPI (Penang) Sdn Bhd (“CPI”) and King Koil Manufacturing West LLC (”KKMW”), contributed 80% to the Group’s revenue. During the quarter under review, the global pandemic had subject KPS’ manufacturing business in the China, Malaysia and the United States of America (“the US”) to a temporary halt in operation at the advent stage of the outbreak in response to the movement control orders (“MCO”) in the respective localities. Disrupted supply chain delayed deliveries of some input materials and restricted production capacity while order volume for several core products turned lethargic as demand weakened due in part to the customers’ production suspension.
Toyoplas led the revenue contribution to RM87.8 million. This was followed by CBB, contributing RM44.1 million, lower than that in the corresponding quarter in the previous year by RM3.7 million, on lower traction from the paper, carton, and plastics divisions. The offset division partly made up for the moderation in sales in the other divisions. CPI contributed RM33.9 million, also lower than what posted in the corresponding quarter last year by RM8.7 million. CPI’s revenue decline was felt across automotive, healthcare and communication & IT business segments except in other segment whose increase was supported by a new customer and steady orders from existing customers. KKMW contributed the remaining revenue of RM12.1 million, lower than that in the corresponding period last year by RM7.1 million, mostly due to state lockdown in California and Arizona for from late-March until mid-May 2020.
http://mrem.bernama.com/viewsm.php?idm=38028
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