KUALA LUMPUR: Manufacturer of hand formers and glove moulds, ES Ceramics Technology Bhd experienced an 84.4% loss in its net profits for its third quarter (Q3) ended 29 February 2024 to RM774,000 compared to its RM4.7 million in last year’s corresponding quarter.
According to its quarterly financial report, it was stated that the decline in profit was mainly attributed to the manufacturing segment facing a lower average selling price and sales volume amid higher operating expenses.
Despite this, the group managed to gain a marginal 7.5% increase in its revenue of RM87.68 million compared to last year’s corresponding quarter of RM81.55 million. However, the figure is a slight decline compared to the group’s immediate preceding quarter of Q2, which recorded a revenue of RM93 million.
“The lower revenue was mainly due to the production output being affected by the Chinese New Year breaks, coupled with the significant increase in material costs for building material segment respectively.
“In addition, the preceding quarter has recorded a disposal gain arising from the sale of an industrial land. This gain had contributed substantially to the financial performance of the preceding quarter,” the report stated.
Moving forward, the group expects the economy to continue to be on a challenging trend, especially in terms of the increase in raw material prices coupled with higher gas and electricity unit prices.
“Despite the prevailing challenges, the Group remains cautiously optimistic on the long-term business prospects and will continue to actively pursue various business strategies to increase its revenue, strengthen product portfolios, enhancement of supply chain security, focus on reducing redundancy, improving efficiency, automation across our operations and to implement cost control measures to maintain our competitiveness during this challenging time,” it said.
ES Ceramics’ former manufacturing plants are located in Ipoh City, Perak and Sadao City, Songkhla Province, Thailand.
The factory in Thailand produced mainly examination formers, surgical formers, household formers and industrial formers, as well as custom made formers whereas the plant in Malaysia focuses on the manufacture of examination formers.
