KUALA LUMPUR (Nov 18): Formosa Prosonic Industries Bhd net profit for the quarter ended Sept 30, 2021 (3QFY21) slid 3.37% to RM24.97 million from its record quarterly profit of RM25.84 million in 3QFY20, dragged by lower sales from reduced production volume amid the Movement Control Order.

Earnings per share for the OEM speaker system manufacturer came in at 10.1 sen in the quarter, from 10.4 sen in 3QFY20.

The decline was offset by one-off gains on disposal of property, and the group also accounted for stock option expenses in the quarter.

Notably, gross profit declined 17.61% to RM34.99 million from RM42.47 million. Quarterly revenue meanwhile fell 15.7% to RM236.92 million from RM281.05 million.

The latest quarter marks Formosa Prosonic’s third consecutive quarter of posting net profits above the RM20 million-mark, and its fifth consecutive quarter with revenue above the RM200 million level.

For the nine-month period ended Sept 30, 2021 (9MFY21), Formosa Prosonic’s net profit rose 73.02% to RM68.68 million or 27.8 sen per share from RM39.69 million or 16 sen per share in 9MFY20, largely due to higher sales volume.

Concurrently, revenue in the period rose 32.18% to RM678.34 million from RM513.18 million.

“In respect to the group financial position, it remains solid with a net cash position.

“The group remains mindful of trade receivables collection which was within normal range of 60 to 90 days and the higher inventory level which is required to support subsequent production and delivery requirement,” it said.

On prospects, the group said operations have already been impacted from shortages of materials, port delays, as well as rising commodity and energy prices.

“The group is aware of these circumstances, will monitor the market situation closely and take necessary steps to minimise any adverse impact and to optimise its operations to adapt to a volatile business environment,” it said.

Shares of the company rose 8 sen or 2.15% to close at RM3.80, giving it a market capitalisation of RM954.45 million.