29 Jul 2022 PGF Capital net profit surged 150.2pc to RM5mil in Q1
KUALA LUMPUR: PGF Capital Bhd’s net profit for the first quarter (Q1) ended May 31, 2022, surged 150.2 per cent year-on-year (YoY) to RM5 million from RM2 million in the same period last year, driven by higher production output and sales for its insulation segment.
Revenue for the quarter came in 51.8 per cent higher YoY at RM25.9 million from RM17.06 million in Q1 last year due to higher insulation product revenue, which increased 52.15 per cent to RM25.3 million.
The company achieved higher production output, resulting in increased sales delivery and revenue following the furnace rebuild and plant upgrading projects in the middle of October 2021.
The resolution of manpower issues due to the reopening of the international border on April 1, 2022, also contributed to higher production output.
Conversely, the company’s property development segment incurred a loss before tax of RM0.22 million, while its investment holding segment registered a loss of RM0.32 million.
Other segments, which include the agriculture and aquaculture activities, incurred a loss before tax of RM0.27 million due to increased activities and expenditures incurred before harvesting.
Executive chairman Fong Wern Sheng said it had been a challenging ride for the company with the waning recovery pace of the global economy, inflation, rising raw material costs, an ongoing outbreak of monkeypox and the continued rise in Covid-19 cases.
“With our strategies in place, we have managed to brave through all these challenges, with the company continuously charting another positive performance this quarter.
“Demand from the Oceania region continues to be strong as the construction sector grows.
“The revision in the National Construction Code (NCC) in Australia and Building Code in New Zealand next year are also expected to contribute to the increase in demand for building insulation materials,” he said, adding that this bodes well with PGF’s expansion plans in the region.
However, the company expected recovery to be hindered by risks prevalent in all markets, primarily supply chain disruption.
PGF Capital will take the necessary steps to mitigate these risks as much as possible.
The company is cautiously optimistic that the insulation business will perform better in the current financial year.