KUALA LUMPUR (Aug 21): Panasonic Manufacturing Malaysia Bhd’s net profit surged 78.31% to RM20.42 million for the first quarter ended June 30, 2023 (1QFY2024), from RM11.45 million a year earlier, driven by several factors including lower raw material costs, especially for steel and other major raw materials.

Panasonic also attributed the higher quarterly earnings to a higher foreign exchange (forex) gain of approximately RM4.8 million, from RM3 million previously, as a result of a weaker ringgit against the US dollar, and an increase in interest income by RM2.8 million following the recent interest rate hike.

Earnings per share jumped to 34 sen for 1QFY2024, from 19 sen for the same period last year, according to the electrical home appliances manufacturer in a bourse filing on Monday (Aug 21).

Quarterly revenue, however, slipped 6.34% to RM228.24 million from RM243.68 million last year, dragged by lower sales mainly due to the discontinuance of the kitchen appliances business since the end of the last financial year.

It said that sales of fan products also declined, mainly in the Middle Easterm and Asean countries, particularly Vietnam and Singapore, as demand slowed in these markets.

Compared to the preceding quarter of 4QFY2023, net profit almost tripled from RM7.35 million, mainly due to higher sales achieved and a larger share of results from associate companies.

Revenue grew 16.73% from RM195.53 million for 4QFY2023, driven by higher sales in the domestic market from Living Appliances and Solutions Company, as well as heating, ventilation and air-conditioning company products.

Panasonic, an export-oriented company, expects the current financial year to continue to be challenging for the group.

“The company is currently intensifying its efforts to venture into new products to maintain its business competitiveness, and to counter the loss of sales due to recently terminated businesses.

"Concurrently, the company has made further progress in the utilisation of technology in its manufacturing facilities to improve productivity and increase efficiency, while continuing to implement cost-reduction measures to reduce overall cost of production and to improve profitability," it said.

Panasonic said that with these measures in place, it will strive to meet those challenges ahead with agility and resilience to achieve positive results for FY2024.

Panasonic shares closed four sen or 0.19% higher at RM20.74 on Monday, giving the group a market capitalisation of RM1.26 billion.