Magni-Tech Q2 earnings 28% lower

PETALING JAYA: Magni-Tech Industries Bhd’s net profit for the second quarter ended Oct 31, 2017 fell 28% to RM20.5 million from RM28.52 million a year ago mainly due to the packaging segment that saw higher raw material costs and operating expenses, and lower revenue.
Its revenue for the quarter under review decreased by 9.8% to RM252.32 million compared with RM279.79 million in the corresponding quarter in 2016.
On its prospects, Magni-Tech said the manufacturing and sale of garments will still be the group’s major revenue contributor.
The group’s operating environment for the remaining quarters of the current financial year is expected to be challenging amid persisting global economic uncertainties.
For the six-month period, the group’s net profit dropped 23% to RM40.09 million from RM52.05 million a year ago, mainly because of the packaging segment; while revenue decreased slightly by 0.9% to RM546.03 million compared with RM551.18 million in the previous year’s corresponding period.