KUALA LUMPUR, Feb 26 (Bernama) -- Thong Guan Industries Bhd registered a higher net profit of RM61.89 million in the financial year ended Dec 31, 2019 (FY19) from RM45.37 million in FY18.
Revenue increased by 8.5 per cent to RM935.07 million from RM861.62 million, mainly contributed by the increase in export sales of stretch film and courier bags, it said in a filing to Bursa Malaysia today.
In FY19, the plastic products division posted a revenue growth of 8.3 per cent or RM67.10 million, while the food, beverages and other consumable products division achieved a revenue growth of 11.2 per cent or RM6.36 million.
For the fourth quarter ended Dec 31, 2019, net profit was lower at RM17.86 million compared with RM18.21 million recorded in the same quarter in FY18, while revenue rose to RM231.63 million from RM219.10 million previously.
Going forward, the company said the world economic condition was expected to continue to be challenging with uncertainties created from the Covid-19 outbreak.
"This has affected the sales activities of the Group due to the travel restrictions. Despite this, the group has been working hard and has concrete plans to look for new customers and markets for its products," it said, adding the company was also growing the local sales of its products.
"The group is scheduled to commission an additional premium stretch film line and a new blown film line from Germany in Q2 and Q3 of FY20.
"With the additional capacity coming on stream and the continued expansion of the other divisions, the group is optimistic of seeing upward trend in sales volume and profitability," it added.
Thong Guan Industries Bhd, revenue, net profit, export sales, Covid-19