Panasonic Manufacturing Malaysia Bhd posted a 12.9% drop in net profit to RM17.79 million for its first quarter ended June 30, 2024 (1QFY2025) from RM20.42 million a year earlier on lower sales.

KUALA LUMPUR (Aug 26): Panasonic Manufacturing Malaysia Bhd (KL:PANAMY) posted a 12.9% drop in net profit to RM17.79 million for its first financial quarter ended June 30, 2024 (1QFY2025), compared with RM20.42 million a year earlier, mostly due to lower sales.

However, lower material costs — mainly steel — cushioned the lower profitability, the group said in a bourse filing on Monday.

Earnings per share fell to 29 sen from 34 sen in 1QFY2024.

Quarterly revenue fell 3.19% year-on-year to RM220.96 million from RM228.24 million, due to lower sales for its home shower products, and lower export sales for vacuum cleaner products, mainly in Vietnam in the face of stiff price competition, and slower market demand in the Middle East market.

No dividend was declared for the quarter. For context, Panasonic declared a total annual dividend of RM1.36 for FY2024, about 11.5% higher than RM1.22 per share in FY2023.

Panasonic, an export-oriented group, expects the business environment for the current financial year to remain volatile. Nevertheless, the group said it will continue to intensify its efforts to produce new products in its water-related businesses, and expand its current products lineup in order to maintain its business competitiveness.

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

"With these measures in place, the company will strive to meet these challenges ahead with agility and resilience," it added.

Shares in Panasonic increased 20 sen or 1% to close at RM20.18 on Monday, giving the group a market capitalisation of RM1.23 billion. Year-to-date, the stock has gained more than 12%.