KUALA LUMPUR (June 23): Magni-Tech Industries Bhd’s net profit in the fourth quarter ended April 30, 2022 (4QFY22) fell 12.18% to RM26.89 million from RM30.62 million a year ago, as revenue declined on lower sales orders received in both its garment and packaging segments.

Consequently, earnings per share fell to 6.20 sen from 7.06 sen. Revenue dropped 13.18% to RM258.32 million from RM297.54 million, its bourse filing showed.

The group — whose primary income is derived from garment manufacturing with operations in both Malaysia and Vietnam, while the manufacturing of flexible plastic and corrugated packaging products provided it with secondary income — declared its third interim dividend of 2.50 sen per share, payable on July 20.

Compared with the immediate preceding quarter of 3QFY22, the group’s net profit rose a marginal 0.79% from RM26.68 million, though revenue dropped 17.43% from RM312.83 million.

For the full year ended April 30 (FY22), the group’s net profit dropped 27.89% to RM91.69 million from RM127.16 million in FY21, as revenue dropped 19.36% to RM988.97 million from RM1.23 billion in FY21, as its garment segment was affected by the suspension of its Vietnam operations resulting from Covid-19 lockdown in the country.

At the same time, the group said it had to contend with rising raw material costs.

Moving forward, the group said it will continue to ramp up its business operations and improve productivity, though it remains cautious about its business outlook and financial performance in FY23.

Shares in Magni-Tech closed two sen or 1.04% lower at RM1.90 on Thursday (June 23), valuing the group at RM824.51 million.

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