Globetronics Technology Bhd posted a net profit of RM6.51 million for 4QFY2023, a 46% drop from RM12.05 million over the same quarter a year ago, as revenue fell 24% to RM32.55 million from RM43.05 million due to macroeconomic and geopolitical challenges impacting the semiconductor industry.

KUALA LUMPUR (Feb 20): Globetronics Technology Bhd warns of persisting macroeconomic and geopolitical challenges impacting the semiconductor industry that result in unpredictable market conditions, as its net profit about halved for the fourth quarter ended Dec 31, 2023 (4QFY2023).

The group's net profit for 4QFY2023 fell 46% to RM6.51 million from RM12.05 million over the same quarter a year ago, as revenue fell 24% to RM32.55 million from RM43.05 million, its Tuesday bourse filing showed.

It declared a second interim dividend of half a sen per share for FY2023, bringing its payout for the year so far to 3.5 sen per share.

The decline in quarterly profit was due to lower volume loadings from its customers and forex losses, the group said.

For the full year, Globetronics' net profit fell 42% to RM26.42 million from RM45.46 million, as revenue dropped 27% to RM131.82 million from RM180.05 million.

According to the company, its sales for both Southeast Asia and North America segments declined compared to the previous year. As such, the company said it is actively engaging with potential customers to secure new business.

Other factors attributable to the decline were higher tax expenses and higher utilities costs.

Going forward, Globetronics remained cautiously optimistic about achieving satisfactory financial performance in the coming year.

“The semiconductor industry continues to experience challenging macroeconomic and geopolitical issues resulting in unpredictable market conditions. The group has taken measures and will continue to minimise any potential exposures or disruptions from the challenging environment,” it said.

Globetronics is principally involved in the manufacture, assembly, testing and sale of integrated circuits and other components for the semiconductor and electronics industries.

At Tuesday's market close, the company's share price rose two sen to RM1.51, valuing the group at RM1.02 billion.