3Q24 Financial Results Reflect Slower Momentum Due to Operational Challenges

SHAH ALAM, Malaysia, Nov 28 (Bernama) -- Kumpulan Perangsang Selangor Berhad (“KPS Berhad” or “the Company” or “the Group”) (KPS, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) today reported RM275.6 million in revenue for the quarter ended 30 September 2024. The revenue traction was 4% or RM10.3 million lower than RM285.9 million registered in the same quarter last year (“Q3 FY2023”). The decline was due to weaker demand in the packaging and metal machining business. The operating profit was lower at RM11.2 million, down by 34%, or RM5.9 million, from RM17.1 million in the corresponding quarter last year. As a result, the Group profit after tax and zakat (“PAT”) for the quarter slid to RM4.6 million, easing from RM4.8 million registered in Q3 FY2023.

HIGHLIGHTS FOR THE QUARTER ENDED 30 SEPTEMBER 2024

The decline in revenue traction this quarter was mainly attributed to the performance of Century Bond Bhd ("CBB") and MDS Advance Sdn Bhd ("MDS Advance"). CBB faced declining order volumes because of competition in the packaging market, further challenged by nearshoring exercises by two of its customers. Similarly, MDS Advance experienced reduced demand in certain healthcare sectors, which was attributed to customer overstocking. Also distinct in the quarter under review was the strengthening of the Ringgit against the US dollar, affecting the subsidiary companies' USD-denominated sales.