Perstima falls into the red in 2Q on unrealised forex loss

KUALA LUMPUR (Nov 9): Perusahaan Sadur Timah Malaysia (Perstima) Bhd) posted a net loss of RM1.03 million in the second quarter ended Sept 30, 2022 (2QFY2023) compared to a net profit of RM10.94 million in the same period last year, due to unrealised exchange loss of RM26.9 million despite registering higher sales volume.

As such, the tinplate producer and supplier posted a loss per share of 0.8 sen compared to earnings per share of 8.47 sen previously, according to its bourse filing on Wednesday (Nov 9).

The last time Perstima made losses was over two decades ago — back in 3QFY2001 when it incurred a net loss of RM22.07 million.

The group’s latest financial performance was also in stark contrast to its best ever quarterly net profit of RM31.18 million in the immediate preceding quarter (1QFY2023).

Top line wise, it climbed 62.6% to a record high of RM465.18 million from RM286.08 million in the same period a year ago driven by higher selling price coupled with higher sales volume.

Revenue contribution from Malaysia increased RM83 million or 47.8% year on year, while its subsidiary in Vietnam saw growth of RM92.4 million or 80.5%. A RM4.4 million rise in revenue was also recorded for its subsidiary in the Philippines, which started its commercial operation during the current quarter.

Perstima declared an interim dividend of 10 sen per share, payable on Dec 16.

For the first six months period, its net profit rose 84.56% to RM30.15 million from RM16.34 million as cumulative six months revenue grew 68.08% to RM904.03 million from RM537.86 million.

Looking ahead, Perstima said the exceptionally high global inflation and global economy slowdown trends have affected major industries and commodities markets, including the tinplate industry.

Consequently, it noted that the group’s operating environment is expected to continue facing strong headwinds for the remaining current financial year due to interest rate hikes and the ongoing Russia-Ukraine conflict.

This is in addition to recessionary pressure giving rise to a bearish sentiment on tinplate supply and demand besides the continued depreciation of both the ringgit and Vietnamese dong against the US dollar.

“The group will continue to intensify its sales and marketing efforts in addition to applying its best efforts to improve production efficiencies and cost savings to ensure the profitability of the group for the current financial year,” added Perstima.

Its share price settled three sen or 0.71% higher at RM4.28 on Wednesday, bringing the group a market capitalisation of RM552.5 million.