ES Ceramics 3Q net profit drops 60% on lower manufacturing contribution

KUALA LUMPUR (April 26): ES Ceramics Technology Bhd’s net profit dropped 60.04% to RM4.77 million for its third quarter ended Feb 28, 2023 (3QFY2023), from RM11.95 million a year earlier, mainly due to lower contribution from its manufacturing segment.

Earnings per share fell to 90 sen from 2.37 sen, the group's bourse filing showed.

This was despite a 177.15% jump in quarterly revenue to RM81.53 million from RM29.42 million in 3QFY2022, on the back of the group's new revenue stream under the building materials segment, following the completion of the acquisition of Evermix Concrete Sdn Bhd on Aug 30 last year.

The group did not declare any dividend during the quarter.

For the first nine months of FY2023, net profit fell 66.18% to RM12.01 million from RM35.53 million in the previous corresponding period, although revenue climbed 103.72% to RM180.79 million from RM88.74 million.

ES Ceramics said that despite the prevailing challenges, it remains cautiously optimistic on the long-term business prospects.

It said it will continue to actively pursue various business strategies to increase its revenue, focus on improving efficiency, automation across its operations and implement cost control measures.

Separately, ES Ceramics announced the resignation of its independent and non-executive director Datuk Kamal YP Tan, 71, effective Wednesday (April 26) “to pursue other interests”.

Following Kamal's resignation, his daughter Tan San Li — who was an alternate director in the group — has been appointed as an independent and non-executive director.

San Li, 28, has been serving as a corporate development executive at Envictus International since December 2017.

ES Ceramics' shares closed unchanged at 18.5 sen on Wednesday, valuing the group at RM95.33 million.