KUALA LUMPUR (Nov 22): PCCS Group Bhd's earnings jumped 241.85% to RM5.65 million or 2.63 sen per share for the second quarter ended Sept 30, 2022 (2QFY2023), from RM1.65 million or 0.78 sen per share for the same quarter of the previous year, due to a strengthening US dollar. 

Revenue was flat at RM104.06 million from RM102.79 million. 

The apparel company said the better net profit was also due to a 10% contribution from its credit financing business, which only began in August 2021. 

“Although just over a year old, it booked revenue of RM1.29 million for the quarter, and is already recording double-digit growth and margins. For the cumulative six-month period, the credit financing division contributed revenue of RM2.27 million,” the group said in a press release on Tuesday (Nov 22). 

For the six months to Sept 30, 2022, cumulative net profit increased sevenfold to RM22.84 million, from RM3.27 million previously, due to an extraordinary gain of RM6.9 million contributed by the gain on disposal of subsidiaries Mega Label (Malaysia) Sdn Bhd and Mega Label (Penang) Sdn Bhd in the first quarter. 

Revenue stood at RM273.36 million, from RM202.29 million previously. 

PCCS would see net profit of RM8.4 million for the first quarter to June 30, 2022 without these exceptional items, the group added. 

It has cash in the bank of RM80.69 million and short-term funds of RM6.04 million. 

Borrowings stood at RM33.04 million, but this is strongly supported by inventories of RM47 million and trade receivables of RM52.71 million. 

While the group continues to have some RM350 million of apparel orders to fulfil for the financial year ending March 31, 2023 (FY2023), the Covid zero policy and sudden lockdowns in China are causing some havoc to its manufacturing business there.

PCCS, which has 90% of its business in athletic apparels, also has divisions in hire purchase financing and medical devices. The largest export markets for its sportswear are China, European and American countries.