Review of Performance
In the current quarter under review, the Group achieved a higher revenue of RM140.18 million, an increase of RM6.99 million or 5% as compared to RM133.19 million in the preceding year corresponding quarter. The Group achieved a lower profit before tax of RM20.20 million, a 22% decrease as compared to RM25.83 million in the preceding year corresponding quarter.
EPS 2ndQ'07= 8.5sen. Accumulated EPS = 24.21sen.
For the current financial year-to-date, the Group recorded a higher revenue of RM290.92 million and profit before tax of RM55.47 million, a 16% increase and 6% increase respectively when compared to a revenue of RM251.51 million and a profit before tax of RM52.49 million in the preceding year corresponding period.
The increase in revenue in the current quarter and financial year-to-date was mainly due to higher export sales volume of plywood, coupled with the increase of export plywood selling prices. The increase in profit before tax in the current financial year-to-date was mainly attributable to the higher profit margin derived from the manufacturing operations, which was due to increase in average selling prices of plywood and particleboard, as compared to preceding year corresponding period.
Variation in the Quarterly Results Compared to the Results of the Immediate Preceding Quarter
For the quarter under review, the Group recorded profit before tax amounting to RM20.20 million, a decrease of RM15.07 million or 43% as compared to RM35.27 million attained in the preceding quarter. The decrease in profit before tax was mainly due to lower profit derived from the logs trading and plywood operations as a result of lower sales volume of logs and plywood respectively.
Commentary on Prospects
With the sustained demand from the key markets, the prices of the timber products are expected to remain firm in the near future. The Group’s timber operations are expected to continue making positive contributions to the Group’s earnings. The Group remains committed to prudent management and will continue taking stringent measures and plans to improve efficiencies and productivity of its business operations.
Barring any unforeseen circumstances, the Group’s result is expected to be satisfactory for the remaining quarters of the financial year.
