KUALA LUMPUR (Nov 30): RGB International Bhd’s net profit for the third quarter ended Sept 30, 2023 (3QFY2023) jumped 20-fold to RM 26.07 million, compared to a net profit of RM1.08 million a year earlier.

Earnings per share for the quarter rose to RM1.71 from eight sen, the group’s filing with Bursa Malaysia on Thursday showed.

RGB’s revenue for 3QFY2023 showed a significant increase of 142% to RM170.37 million, compared to RM70.34 million recorded a year earlier.

The company declared an interim dividend of 0.6 sen per share, to be paid on Jan 16, 2024.

Among revenue streams for 3QFY2023, the sales and marketing division contributed the most with RM137.43 million, due to increase in the number of products sold, said RGB.

Meanwhile, the technical support and management (TSM) division contributed RM31.97 million in revenue, which increased by 24% compared to the previous year’s corresponding quarter, mainly due to improved performance across most of the TSM outlets.

RGB also noted a significant improvement in profit before tax of RM 28.12 million for 3QFY2023, compared to RM1.6 million in 3QFY2022, which was driven by the receipt of insurance compensation for a fire incident that happened in December 2022.

Moving forward, the group expects the tourism and hospitality industries to continue recovering, supported by the increase in international travel, especially in the regions where the group operates.

Given the favourable market outlook, the group expects to achieve a strong performance for the financial year ending Dec 31, 2023, underpinned by sturdy orders secured to date, despite facing inflationary pressure on its operating costs.

At the time of writing, RGB was traded at 30 sen per share, translating into a market capitalisation of RM 464.47 million.