KUALA LUMPUR: Sern Kou Resources Bhd (SKR) posted revenue of RM78.0 million for the first quarter (Q1) ended 30 September 2021 (FY22) compared to RM80.7 million posted same quarter last year.
The marginal decline was due to the imposition of Full Movement Control Order (FMCO), which affected its manufacturing and trading of furniture operations.
Net profit for the quarter inched lower to RM1.38 million from RM4.08 million due to lower contribution from manufacturing and trading of furniture division and exacerbated by the increase in Covid-19 related cost.
SKR's processing and trading of wood segments achieved double-digit growth of 34.0 per cent year-on-year (YoY) to RM74.1 million in Q1 FY22 compared to RM55.3 million a year ago.
This was driven mainly by higher demand for wood products during the quarter.
Managing director Chua Peng Sian said the company's business segments have been operating with a full workforce since
"Our furniture manufacturing division has been picking up the pace to fulfil the order backlog, and we continue to see healthy orders in the pipeline.
"The expansion plans for our furniture manufacturing lines and the sawmill capacity enhancement remain intact," he said in a statement today.
Regarding balance sheet strength, the company's net gearing was 0.2x at the end of September 2021, with net assets per share of 23 sen.