KUALA LUMPUR: Sern Kou Resources Bhd's net profit increased 47 per cent to RM2.04 million in the first quarter (Q1) ended Sept 30, 2022 from the RM1.39 million recorded in the same quarter a year ago.

In a statement today, the company said the larger-than-proportionate increase stemmed from improvement in manufacturing and trading of furniture segment coupled with lower effective tax rate incurred in the current quarter.

Revenue in Q1 increased 43.7 per cent to RM112.03 million from RM77.96 million.

This was the first time Sern Kou's quarterly revenue surpassed the RM100 million-mark.

"The double-digit increase was primarily attributed to higher contribution from its manufacturing and trading of furniture division as well as stronger demand for processing and trading of wood segment," the company said.

Managing director Chua Peng Sian said the company is pleased to deliver a healthy set of results, especially against the backdrop of very demanding environment.

"Moving forward, the challenging landscape is anticipated to prevail as businesses globally continue to grapple with market uncertainties along a myriad of macroeconomic issues including inflationary pressure, rising interest rates and recession fears.

"The company is confident to navigate through these headwinds by leveraging on our solid balance sheet, prudent management combined with our growth plans and sustainable forestry initiative," he said.