PT RESOURCES RECORDS STRONG 14.2% REVENUE GROWTH IN 1QFY2024, DRIVEN BY INTERNATIONAL EXPANSION

  China remains a key driver as the Company looks to mitigate domestic market fluctuations

KUALA LUMPUR, 27 SEPTEMBER 2023 – PT Resources Holdings Berhad ("PT Resources" or the "Company"), a processor and trader of frozen seafood products, and trader of other food products, today revealed a robust increase in revenue of 14.2% to RM131.6 million for the first quarter ended 31 July 2023 ("1QFY2024") in comparison to RM115.3 million in 1QFY2023 showcases the success of the Company's aggressive international expansion strategy.

The revenue growth was fuelled by a 124.0% increase in overseas demand, particularly from China. The China market  accounted for RM65.7 million, significantly higher than the RM29.6 million reported in 1QFY2023. Revenue from the domestic Malaysian market was RM57.3 million, reflecting a strategic shift to mitigate a drop from RM82.1 million in the previous corresponding quarter. Similarly, contributions from Saudi Arabia and other markets, including Indonesia, Thailand, Singapore, and the United Arab Emirates, showed positive trends, standing at RM5.5 million and RM3.1 million, respectively.

Despite the commendable growth in revenue of 14.2%, the Company did observe a 15.6% decrease in gross profit to RM11.1 million in the 1QFY2024 as compared to the 1QFY2023. These challenges were largely attributed to increased material purchase costs and a 29.2% uptick in administrative expenses, factors that the Company is actively focused on managing.

Managing Director of PT Resources, Mr. Heng Chang Hooi said, "We are highly encouraged by the substantial revenue growth this quarter, especially from our overseas markets like China. These strong figures validate our strategic focus on expanding internationally. By leveraging our new subsidiaries in China and Indonesia, we're eyeing significant demand in the food and beverage (“F&B”) industry. Notably in China, we have been supplying considerable quantities of raw materials to ready-to-cook and ready-to-eat factories, catering industry, hotels, and even end consumers. As a result, we're optimistic about the Company's future and our expanding presence across Southeast Asia, including China.”

“While we acknowledge the challenges we face, including higher material and administrative costs, we're making carefully calibrated investments to manage these aspects responsibly. Our aim is to maintain a sustainable financial profile over the long term, even as we pursue these exciting new revenue streams."

For the Japanese Fukushima wastewater discharge incident, PT Resources reiterates that this event has had no impact on the company's business operations and supply chain. PT Resources believes that this incident will only cause short-term concerns for customers since the company has never sourced seafood products from Japan. It is once again emphasised that the primary source of raw materials for PT Resources is from the Southeast Asian region, including Malaysia.