Mega First 1Q profit jumps 11% on higher contribution from renewable, packaging divisions

KUALA LUMPUR (May 25): Mega First Corporation Bhd (MFCB)’s net profit in the first quarter ended March 31 (1QFY22) jumped by 10.9% to RM81.34 million from RM73.34 million a year earlier, underpinned by higher profit contribution from the Renewable Energy and Packaging divisions.

Earnings per share rose to 8.6 sen from 7.74 sen.

In a Bursa Malaysia filing on Wednesday (May 25), the group’s quarterly revenue rose by 40.61% to RM272.38 million compared with RM193.72 million, supported by higher sales contribution across all of its core divisions.

On a quarterly basis, net profit tumbled by 61.78% from RM212.81 million reported in the immediate preceding quarter (4QFY21) while revenue slid by 2.93% from RM280.62 million.

Moving forward, the group expects to deliver another year of healthy earnings growth in 2022, driven primarily by expected improved earnings performance by the Renewable Energy Division and the Packaging Division, and a sustainable turnaround of the Group’s joint venture company, Edenor Group.

“The ongoing global supply chain disruptions, escalating inflationary cost pressures, rapidly rising interest rate environment and tight labour market are several key challenges the Group will need to manage in the coming year,” it said.

Meanwhile on its packaging division, the group shared that the impact of higher raw material costs and other inflationary pressures remain a concern.

However, it is optimistic of recovering some lost margin through production efficiency gains on higher volumes.

Earlier on Wednesday, the group which builds, owns and operates renewable energy (RE) plants, extended an invitation to the public to its results briefing for 1QFY22, in what is probably the first time that a listed company in Malaysia has done so.

Shares in MFCB ended unchanged at RM3.74, valuing the company at RM3.7 billion.