KLANG: Total door system solution provider, Econframe Berhad recorded its highest-ever nine-month performance in its third quarter (3QFY24) and nine-month financial results announced today for the period ended May 31, 2024 (9MFY24).
Econframe 9MFY24 revenue jumped 44.1% year-on-year (YoY) to RM79.1 million from RM54.9 million in the previous year. This was chiefly driven by sustained demand and contribution from its aluminium glazing and façade works business, Lee and Yong Aluminium Sdn Bhd (LYASB).
9MFY24 profit before tax (PBT) improved 8.2% YoY to RM13.3 million versus RM12.2 million a year ago. The smaller-than-proportionate increase was due to the amortisation of intangible assets amounting to RM3.0 million, arising from the purchase price allocation exercise in accordance with Malaysian Financial Reporting Standards (MFRS) 3: Business Combinations, in relation to the acquisition of LYASB.
Excluding this one-off non-cash item, adjusted PBT for the period under review would have been RM16.2 million.
At the bottom-line, Econframe posted its best-ever profit after tax and noncontrolling interest (PATNCI” or net profit) even after accounting for the aforementioned exceptional item. 9MFY24 net profit came in higher at RM9.2 million vis-à-vis RM9.0 million in the prior year.
Econframe Group managing director, Lim Chin Horng said, “The Group is pleased to have delivered our best-ever nine-month performance in our history. Looking ahead, we remain upbeat on the outlook of Econframe. We secured new projects that enhanced our order book giving us healthy earnings visibility. Apart from that, the Group continues to see vast opportunities in both the doors and aluminium sectors. This enables us to steadily replenish our order book to maintain it at healthy levels.”
He added that they are pleased to further capitalise on the strong synergies with LYASB as they have secured more jobs by leveraging on Econframe’s network.
At the same time, he said LYASB’s ongoing capacity expansion plans will enable it to fulfil the pentup orders.
Meanwhile, the Group continues to explore synergistic new business opportunities that would complement their core operations and diversify their revenue stream, Lim added.
The Group registered a revenue of RM24.9 million for 3QFY24, an increase of 27.3% YoY, primarily attributed by the earlier mentioned factor. PBT for the current quarter under review came in at RM1.6 million. On an adjusted basis, adjusted PBT would have been RM4.6 million, similar to 3QFY23 following a change in product mix contribution.
