SHAH ALAM, 31 MAY 2023 – LEON FUAT BERHAD (“Leon Fuat” or the “Group”), a manufacturer and trader of steel products specialising in rolled long and flat steel, today announced that the Group recorded a 14.4% decrease in revenue for the first quarter ended 31 March 2023 (“Q1FY2023”) to RM233.70 million compared with RM273.02 million for the corresponding quarter of the preceding financial year (“Q1FY2022”).
For the quarter under review, the Group registered a 59.5% decrease in profit before tax (“PBT”) to RM12.87 million compared with RM31.81 million for the Q1FY2022. Profit after tax (“PAT”) decreased by 55.3% to RM10.68 million for the Q1FY2023 compared with RM23.89 million for the Q1FY2022
Compared with the immediate preceding quarter (“Q4FY2022”), current quarter’s revenue decreased by 1.9% from RM238.15 million to RM233.70 million while PBT of RM12.87 million was recorded for Q1FY2023 as opposed to loss before tax of RM7.49 million for Q4FY2022 and PAT of RM10.68 million was recorded for Q1FY2023 as opposed to loss after tax of RM5.14 million for the Q4FY2022.
On a segmental basis, the trading segment contributed 34.0% to revenue for the Q1FY2023 compared with the Q1FY2022 of 33.0% while the processing segment contributed 66.0% to revenue for the Q1FY2023 compared with the Q1FY2022 of 67.0%.
Calvin Ooi Shang How, Executive Director of Leon Fuat said, “Currently, the outlook for the Group remains vigilant while we are optimistic that we will be able to achieve positive results for the remaining quarters of the year. The headwinds remain considerable with slower growth momentum in the domestic economy and a challenging operating landscape impacted by high costs and a weak ringgit.”
“While we are starting to see a turnaround in our financial performance compared with Q4FY2022, Q1FY2023 is supported by a 318.3% increase in gross profit due to the gross profit margin increased from 1.6% for the Q4FY2022 to 12.2% for the Q1FY2023, slightly negated by absence of net reversal of inventories written down of RM3.05 million which was recorded in Q4FY2022. The Group will continue to seek out new customers among small-medium enterprises across various industries.”
